Dholera: Weather conditions to push solar power price higher

Challenging weather conditions in Dholera, where 5,000 MW solar power projects with an investment of Rs25,000 crore are planned, are expected to increase the cost of power, two senior officials who are connected with the projects, said.

Raj Gopal, principal secretary of state energy and petrochemicals department, said that the terrain in Dholera is challenging, with high salinity level, and corrosive air. Moreover, the CRZ area, where the solar park would come up, is inundated for three months every year.

"Because of these conditions, we will need to use better quality materials."

"The cost of civil works will be higher, and the cost of power will also be more," Raj Gopal told reporters on the sidelines of CII's Solar Conclave 2018.

Jai Prakash Shivahare, CEO of Dholera Special Investment Region Development Authority, said that even after accounting for 50% higher cost of civil works, the power price, to be discovered through competitive bidding, is expected to be below Rs3 per unit.

"We are offering land to developers are very competitive prices. The economies of scale will also give some advantage," Shivahare said.

Of the 5,000 MW solar capacity, bids for 1,000 MW would be invited in a month or so. The first phase of the project is expected to begin operations in about two years. Raj Gopal also said that a further 2,200 MW solar power capacity will come up in the state by 2022.

This includes a 500 MW solar park in Harshad village of Banaskantha, and a 700 MW project in Radhaneshda village.

Existing solar power capacity in the state is a little more than 1,600 MW.