Tata Power Solar sets up solar power plant for Chennai Silks

BANGALORE, INDIA: Tata Power Solar has set up a 2MW utility scale grid connected solar power plant for the Chennai Silks group. The plant, situated in Olappalayam and built in three months, is expected to generate 3.1 million units of electricity in its first year of operation.

"The solar power plant has helped our organization to avail accelerated depreciation benefit at the earliest opportunity, coupled with REC benefit which helps reduce our working capital needs." said N K Nandhagopal, MD, the Chennai Silks group.

The captive power plant will work under the REC (Renewable Energy Certificate) mechanism. As part of the REC mechanism, the Chennai Silks group will share the energy generated from this plant to Tamil Nadu Generation and Distribution Corporation (TANGEDCO) and in return will get an equivalent quantity of uninterrupted electricity supply to its factory.

An additional income of about Rs. 3.0- 3.72 crores through trading of REC is expected besides Rs. 1.5 - 2.0 crores in year as energy cost savings, says a release.

Ajay Goel, CEO, Tata Power Solar, said: "I am quite confident this project would act as a catalyst for other industries to adopt solar as the first alternate source of energy for their business needs."