DVC to invest Rs 15,000 cr for solar and pump storage project
POWER & RENEWABLE ENERGY

DVC to invest Rs 15,000 cr for solar and pump storage project

Damodar Valley Corporation (DVC), a three-way joint venture, will invest more than Rs 15,000 crore for constructing 2,000 MW of solar portfolio and a 1,500 MW pump storage facility.

The investment aims to offer a better mix of thermal, hydel and solar power to its current industrial consumers and also envisions providing to domestic consumers making use of the open access.

Presently, DVC, which has an established capacity of 6,897 MW and operates four dams, wants a JV with NTPC for executing the solar power projects to come up in stages. DVC would install the pumping storage plant on its own at Lugu Pahar, Bokaro district in Jharkhand and lift water for storage during off-peak hours. The firm, presently producing 5,990 MW, supplies at 30,000 volts, at an average rate not surpassing Rs 4.90 per unit for industrial consumption. But for entering the domestic sector, a new distribution network needs to be in place involving formidable investments. The firm has to either make 415 volts low tension (LT) three-phase supply or 230 volts single phase LT supply for domestic consumption.

A senior company executive told the media that reducing supplies from over 30,000 volts to 415 or 230 volts requires it to happen gradually, but DVC is keen to explore the retail segment.

They are evaluating the demand of domestic consumers for DVC power before taking any investment decision. Jharkhand is their focus as a large area remains untapped. But, the priority of the firm remains in supplying power to the upcoming industrial clusters both in West Bengal and Jharkhand, for which the power generator has begun a marketing initiative through power melas.

Jharkhand was aiming for more power from DVC replacing power from NTPC’s 4,760 MW Vindhyachal and 3,000 MW Rihand Power facilities in Uttar Pradesh.

Although DVC has long-standing problems with mounting dues from Jharkhand Bijli Vitran Nigam, the Centre’s recent decision of deducting Rs 714 crore from Jharkhand’s RBI account for payment towards DVC has made a row.

Nevertheless, DVC aims to invest Rs 5,146 crore for installing the pump storage plant in Jharkhand and more than Rs 10,000 crore for setting up the floating solar plants in the catchment areas of the DVC dams at Tilaiya, Panchet, Mython, and Konar.

The solar plants would occupy up to 40% of the water bodies’ space in the stated dams’ catchment areas. A feasibility study for the pump storage unit has already been done, and the Solar Energy Corporation of India is developing a feasibility report on the floating solar projects. Bids were invited for a 50 MW solar project in October 2020, but discussions are on with NTPC to rope them in as a JV partner.

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Also read: Adani Group to invest $20 bn in RE generation for next 10 years

Also read: Open access solar installations in India at 209 MW in Q2 FY22

Damodar Valley Corporation (DVC), a three-way joint venture, will invest more than Rs 15,000 crore for constructing 2,000 MW of solar portfolio and a 1,500 MW pump storage facility. The investment aims to offer a better mix of thermal, hydel and solar power to its current industrial consumers and also envisions providing to domestic consumers making use of the open access. Presently, DVC, which has an established capacity of 6,897 MW and operates four dams, wants a JV with NTPC for executing the solar power projects to come up in stages. DVC would install the pumping storage plant on its own at Lugu Pahar, Bokaro district in Jharkhand and lift water for storage during off-peak hours. The firm, presently producing 5,990 MW, supplies at 30,000 volts, at an average rate not surpassing Rs 4.90 per unit for industrial consumption. But for entering the domestic sector, a new distribution network needs to be in place involving formidable investments. The firm has to either make 415 volts low tension (LT) three-phase supply or 230 volts single phase LT supply for domestic consumption. A senior company executive told the media that reducing supplies from over 30,000 volts to 415 or 230 volts requires it to happen gradually, but DVC is keen to explore the retail segment. They are evaluating the demand of domestic consumers for DVC power before taking any investment decision. Jharkhand is their focus as a large area remains untapped. But, the priority of the firm remains in supplying power to the upcoming industrial clusters both in West Bengal and Jharkhand, for which the power generator has begun a marketing initiative through power melas. Jharkhand was aiming for more power from DVC replacing power from NTPC’s 4,760 MW Vindhyachal and 3,000 MW Rihand Power facilities in Uttar Pradesh. Although DVC has long-standing problems with mounting dues from Jharkhand Bijli Vitran Nigam, the Centre’s recent decision of deducting Rs 714 crore from Jharkhand’s RBI account for payment towards DVC has made a row. Nevertheless, DVC aims to invest Rs 5,146 crore for installing the pump storage plant in Jharkhand and more than Rs 10,000 crore for setting up the floating solar plants in the catchment areas of the DVC dams at Tilaiya, Panchet, Mython, and Konar. The solar plants would occupy up to 40% of the water bodies’ space in the stated dams’ catchment areas. A feasibility study for the pump storage unit has already been done, and the Solar Energy Corporation of India is developing a feasibility report on the floating solar projects. Bids were invited for a 50 MW solar project in October 2020, but discussions are on with NTPC to rope them in as a JV partner. Image SourceAlso read: Adani Group to invest $20 bn in RE generation for next 10 years Also read: Open access solar installations in India at 209 MW in Q2 FY22

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