Mahagenco forays into solar power sector

Pune: Power generation company, Mahagenco, is making a foray into solar power generation and is setting up a 1 MW grid connected solar power project at Chandrapur.

The new project that involves an investment of Rs 20 crore and will go on stream in a year’s time will also enjoy carbon credit benefits.

The pilot project will be the first in Maharashtra under the a series of new incentives announced by the Ministry of New and Renewable Energy (MNRE) this January to accelerate solar power development.

Dr Pradeep Bavadekar, Managing Director, MITCON, which has been appointed as turnkey consultant for the project, said that cost of such projects will reduce as more players enter the fray.

The pay-back period of the Mahagenco solar power unit will be 6-7 years through sale of the electricity and carbon credits he said adding that around 1,200 tonnes of carbon dioxide will be reduced per annum on account of it.

Under the MNRE scheme, the procurement price for a unit of electricity has been set at Rs 15, with the State Government contributing Rs 3 while the remaining will be funded by the Central Government through the Indian Renewable Energy Development Authority (IREDA).