Green corridor to see wind and solar farms in Rajasthan, Tamil Nadu

NEW DELHI: The government will set up wind and solar farms in Rajasthan and Tamil Nadu in the first phase of the Rs 43,000-crore green energy corridors project that aims to add 30,000 MW to the national grid by 2020. The first phase of the Indo-German project is expected to cost Rs 18,000 crore, of which Rs 10,000 crore will be invested in the two states, a senior official told ET.

The initial funding for the project will be finalised by the month end and the first tranche of Rs 2,500 crore is expected to come from Germany, the official added. Germany has committed technical and financial assistance of euro 1 billion for the green energy corridors under the Indo-German bilateral development cooperation programme.

“We have appointed a sub-group that will soon write to the finance ministry to seek the first tranche of Rs 2,500 crore from Germany,” the official, who did not wish to be named, said. “Meanwhile, it is also in talks with the PowerGrid and the National Cooperative Consumers Federation of India to fund the remaining part of the initial phase.”

India aims to channel renewable energy from wind and solar projects into the national grid to help narrow the country’s power deficit and reduce its dependence on coal. A massive grid failure last summer had left millions of people without electricity in several parts of the country.

The country has 27,541.71 mw of installed renewable energy capacity, excluding hydropower stations, but its integration with the national grid is difficult due to variations in supply and voltage. The green energy corridors will comprise of both inter-state and intra-state schemes for evacuation of power from wind and solar projects.

Integration of these projects with the national grid will require intra-state grid upgradation and inter-state networks that will be taken up by PowerGrid and the state utilities, respectively. The Power Grid Corporation of India, the central transmission utility, operates five grids—northern, western, southern, eastern and northeastern-—which together transmit nearly 1,29,980 mw during peak demand.