India's Gujarat targets 1,000MW solar project

The government of the state of Gujarat in India may set up a 1,000MW solar power project.

Gujarat estimates that the project could cost around Rs 8 to 9 crore per MW, therefore, the 1,000MW project could cost anywhere between Rs 8,000 to 9,000 crore.

The state hopes to finance the project through the International Finance Corporation.

“The project is still in the conceptual stage. We have initiated talks with the IFC to seek its support for the project. We will go ahead with it depending on their response,"said DJ Pandian, principal secretary, energy and petrochemicals department of Gujarat.

“We have already managed to bring down the cost of solar power from Rs 15 per unit to less than Rs 10 per unit. With better technologies, there is no reason why prices should not fall further. Our idea is to bring down solar power price at par with the grid, i.e. around Rs 3 per unit,” he added.

The IFC said that it is keen to support such a project.

“We have funded quite a few projects in Gujarat, including solar power projects. We are keen to extend the partnership with Gujarat, and are in talks with the government to see how IFC can help in the 1,000MW solar power project," said Anita George, regional industry director, Asia, infrastructure and natural resources, IFC.

“We could also be involved in development of infrastructure and other necessary framework for such a project,” she added.

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