The Karnataka government which had announced a project to set up micro grid solar units of 500-kilowatt (kW) battery storage capacity in one backward village in the jurisdiction of each electricity supply company (Escom), has decided not to go ahead with the project citing financially non-viability. The project was aimed at making backward villages self-reliant in energy.
By KREDL
Katenahalli in Tumakuru district (Bescom), Arji in Kodagu district (CESC), Lingapura in Chikkamagaluru district (Mescom), Jagalapete in Uttara Kannada district (Hescom), and Antavaram in Kalaburagi district (Gescom) were the five villages selected for the units to be set up. Karnataka Renewable Energy Development Limited (KREDL) was the implementing agency for the project.
K.P. Rudrappaiah, managing director, KREDL, in a letter to the government said: “The cost of installing one 500 kW micro solar grid unit is ₹7.94 crore, and the cost of establishing five such units will be ₹39.7 crore. As the project is on a smaller scale, the cost of implementation will be relatively higher. This will result in a higher price for each unit of electricity (that will be sold) and Escoms will be financially burdened as they would have to buy power for 25 years.”
