Hindustan Cleanenergy to set up 50 MW solar plant in Odisha

Hindustan clean energy

Hindustan Cleanenergy Ltd (HCEL), the clean-energy wing of Hindustan Powerprojects in India, is setting up a 50 MW solar PV project in Odisha, an eastern state in India.

Electricity generated from the plant will be supplied to state-owned power company Gridco through a 25-year power purchase agreement, HCEL said.

The grid interactive project will help the state meet the renewable purchase obligation (RPO) imposed by Odisha Electricity Regulatory Commission (OERC). As per the RPO, Gridco has to buy six percent of its energy from renewable sources out of which 0.20 percent has to be from solar power.

Hindustan clean energy

The company will offer a levelized tariff fixed for a period of 25 years and with the spiraling price of coal and gas, the project is expected to achieve procurement parity in two to three years, said a letter sent by the company to the state energy department.

HCEL has implemented solar power projects of over 300 MW in India and abroad, which is expected to increase to 500 MW by the end of this year. Recently Hindustan Cleanenergy said it is aiming at 1 GW of capacity by the end of 2016.

The company recently signed power purchase agreements  (PPAs) with Punjab for two projects of 15 MW each and with Uttar Pradesh for a 20 MW project, Hindu reported.

HCEL is planning an IPO later this year to fund its expansion and investments. As per the report from Hindu, the company will be investing Rs.5,500 crore in the next two years to fund its expansion plans.

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