German co, Suryachakra in solar power venture

Oct. 3, 2009 (The Hindu Business Line) --

V. Rishi Kumar

Hyderabad, Oct. 3 German solar power (OTCBB:SOPW) major MAN Solar Millennium GmbH (MSM) is upbeat on the potential of joint development of concentrated solar power projects (CSPs) in India, which it plans to address through special purpose vehicles (SPVs).

The company has entered into a joint venture with Suryachakra Power Venture to establish a series of solar projects in Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh and Andhra Pradesh, in a phased manner. Concentrated solar power systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. The concentrated light is then used as heat source for conventional power plant or is concentrated on to photovoltaic surface.

The Executive Director of MAN Solar, Dr Ruud Dekkers, told Business Line: “India now offers immense scope to tap into the solar power generation business. With the Prime Minister hinting at a target of about 20,000 MW by 2020 and assuring support for the sector with a policy framework, this could only get better.”

“Funding is no big issue for solar power projects provided the technology is proven and the promoters have strong credentials. We do not foresee much problem raising funds in setting up plants globally,” Dr Dekkers said.
Investor interest

Outlining Suryachakra’s business plans, Mr P.V. Rao, Chairman, and Dr S.M. Manepalli, Managing Director, said that the company plans to establish solar power projects connected to the grid with a total capacity of 500 MW in a phased manner.

“In Phase I, we will establish 65 MW and outline our investment plan shortly. Several overseas investors have evinced interest in the project with term sheets as they believe solar power projects could be implemented in India at nearly half the price in Europe,” Mr Manepalli explained.

The venture has chosen Medak district in Andhra Pradesh, Raipur in Chhattisgarh, Hingoli in Maharashtra and Bhavnagar in Gujarat initially to set up solar plants.

Suryachakra is awaiting the policy framework, likely to outline some major benefits to the sector. The MAN-Suryachakra venture covers development, finance and operation of solar thermal plants. The technology adopted is suited for large scale applications, Dr Dekkers said.

MAN would provide the technology know-how and key components for the solar power plants.

(Source: iStockAnalyst )