India To Launch 20,000 MW Solar Power Plan

India’s minister for new and renewable energy, Farooq Abdullah, announced plans to jumpstart a new solar power generation project from 3 MW to 20,000 MW by 2022, according to Reuters.

Prime Minister Manmohan Singh will report on the policy next week, Abdullah told reporters.  "The amount which we are going to talk about is huge. I can only say that much," he added.

The policy is being referred to as the "National Solar Mission" and will specifically deal with the expense of manufacturing solar panels as well as the high price of solar power.

Generally, one megawatt of coal generating capacity costs close to $1 million to construct, while solar capacity nearly doubles that. 

"Our job is to bring the costs down. Whether we are going to give concession on import duties, whether we are going to give a sizeable subsidy to purchase solar power, all will be outlined in the mission," he said.

Supplying adequate electricity is an ongoing battle for India, with peak power dropping about 12 percent below demand.  Backup generators support many businesses due to frequent blackouts. 

India has set a goal to produce 78,700 megawatts of new power capacity by 2012, however key officials have indicated that the country will not meet that target.

Eighty-five percent of the solar panels developed in India are exported, Abdullah said.

"We are unable to use them in the country as prices are high," he remarked.

Indian firms currently making solar panels or just on the brink of producing solar panels, include Baer, XL Telecom & Energy, Bharat Heavy Electricals, and KSK Energy Ventures.

Abdullah also said that the William J. Clinton Foundation is discussing plans with Gujarat and Rajasthan to set up 3,000 MW solar power units in each.