Hindustan Cleanenergy (HCeL), a part of Hindustan Powerprojects, is considering developing a 50MW grid interactive solar PV project in the Indian state of Odisha.
The proposed project is part of the company's key expansion plan that calls for the installation of more than 500MW of solar power capacity by 2014 end and 1GW by 2016.
This solar project is expected to fetch a private investment of INR4bn that would pave the way for large scale private investment in the state.
HCeL has planned to sell the electricity generated by the project to state-owned electric utility GRIDCO under a long-term power purchase agreement (PPA).
The PPA is expected to extend 25 years, while a tariff would be fixed under the prevailing regulations of the Odisha Electricity Regulatory Commission (OERC).
Once completed, the project would bring necessary benefits to the state and is also expected to mitigate the solar purchase obligation set by the OERC.
According to the company, the proposed solar project will promote renewable energy projects with sustainable socio-economic development in the state.
HCeL has commissioned solar power projects of more than 300MW capacity in India and other nations.