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The Punjab government has decided that it will install 300 megawatt solar power photovoltaic projects in the state.
The projects include 100 MW floating solar power projects on reservoirs and lakes and 200 MW of canal-top solar power plants.
Aman Arora, Punjab New and Renewable Energy Sources Minister, presided over the meeting. Arora explained that the proposed 200 MW canal-top project would be implemented in phases. 50 MW would be completed in the initial phase and remaining projects would follow in later phases. Projects will be executed under built, operate and own (BOO) model, according to the Punjab Energy Development Agency (PEDA).
During the meeting, the minister stated that viability gap funding (VGF), which is available from the Department of Economic Affairs of the Union Ministry of Finance under their scheme, was being discussed. VGF is intended to provide capital support to the projects, thoes are not financially viable. The canal-top solar energy projects will be installed on smaller distributaries with less width. This will require less civil work.
Arora stated that the cost of canal-top solar PV projects will be about Rs 5 crore per megawatt (MW) after accounting for 20 percent VGF. The statement also stated that floating solar PV projects, which are being developed in India to tap into the potential areas of lakes and reservoirs, is another emerging option. It said that floating solar PV projects would cost around Rs 4.80 crore per megawatt (MW) after taking into account 20 percent VGF.