Rajasthan approves new solar power policy

The government of Rajasthan has approved a new solar power policy aimed at encouraging construction of 3 GW of solar energy capacity in the next six years.

The policy has targeted development of 1.5 GW of solar energy within three years involving Rs15 billion or US$333.3 million, with private investment expected to double solar capacity by March 2017. The state will select investors through competitive bidding this year. “Many private investors have shown keen interest in setting up solar power generation units in Rajasthan, and by 2018 we expect an investment of Rs200 billion,” said Rajasthan Chief Minister Ashok Ghelot.

Rajasthan is “favorably placed to become the largest provider of solar power among all sources of energy in India at a competitive cost, and to achieve scale on solar power generation, which can change the face of the state and transform the complete economic situation for betterment of the masses,” according to the policy draft approved by the state cabinet April 13.

The draft said 10-12 GW of solar capacity could be set up in the next dozen years. “Endowed with conducive conditions, with perennial and abundant solar radiation, Rajasthan has the potential to become the hub for solar power technologies and a generation of sunrise green energy,” according to the policy draft. The state will provide fiscal incentives for setting up factories to manufacture solar power equipment, Ghelot estimated.