India-based Giriraj Enterprises, a state-owned tobacco trader, has commissioned three PV projects which have a combined capacity of 33MW in Rajasthan, India.
Built by EPC provider Wilson and Sterling, the three projects — of 19MW, 11MW and 3MW respectively — are the most to be installed under the country’s renewable energy credits (REC) programme.
Under this programme, producers of renewable energy are able to obtain certificates for the electricity they feed into the grid. These certificates can be sold to state power distributers which must purchase a portion of their electricity generated by renewable sources including solar.
Giriraj has secured a power purchase agreement with the local state-owned electricity distributor. According to Bloomberg, Giriraj will sell electricity for INR2.7 (US$0.05) per unit, and expects to trade 53,000 certificates annually.
According to renewables consultancy REConnect Energy Solutions Pvt, the solar REC market in India remains buoyant with demand at an all time high while supply is increasing slowly. Indeed, demand for solar credits reached 7,610 while supply was at 3,816 for March 2013 with solar credits being sold at INR13,400 each.