Gujarat Laps Up INR 1,000bn For RE Investment

The state of Gujarat in India has signed memorandums of understanding (MoU) for a total investment of over INR 1,000 billion ($14 billion) in the space of renewable energy during the recently concluded Vibrant Gujarat Summit (VGS) 2019. Through this event, the 9th edition since it started in 2003, the state government positions itself as a preferred investment destination within the country.

Local media says once the MoUs signed in the renewable energy space are realized in 2020 and 2021, these should result into more than 10,000 jobs. It is expected to result in renewable energy capacity additions of 30 GW in the next 10 years, according to state Energy Minister Saurabh Patel, as reported by local media. He also hinted at announcing a small scale solar power project policy soon.

Gujarat based global business conglomerate Adani Group’s Adani Green Energy Limited plans to set up a hybrid solar and wind power park in Khavda in Kutch region for an investment of INR 300 billion ($4.2 billion) as per the MoU signed with Gujarat Energy Development Agency (GEDA). The Press Trust of India (PTI) quoted Gautam Adani of the group as saying the Khavda project will be the ‘world’s largest solar hybrid park’. The company is also planning an integrated lithium battery manufacturing complex and expand its photovoltaic manufacturing capabilities. All of this should be covered through an investment of INR 550 billion ($7.7 billion) over the next 5 years.

Suzlon Energy will also be investing INR 250 billion ($3.5 billion) to develop renewable energy hybrid projects in Kutch and Saurashtra regions.

The Dholera Special Investment Region Development Authority (DSIRDA) committed to develop a 1 GW solar power project for an estimated INR 50 billion ($700 million) according to the MoU signed with Gujarat Power Company. Another agreement it signed was with the Solar Energy Corporation of India (SECI) to supply 4 GW of solar power from the planned 5 GW Dholera Solar Park, which involves an investment of INR 200 billion ($2.8 billion).

In January 2019, Gujarat Urja Vikas Nigam Limited (GUVNL) launched a request for selection (RFS) round for 1 GW of grid-connected solar power projects in Dholera Solar Park (see GUVNL Issues RFS For 1 GW Dholera Solar Project).

Another big domestic business entity, Aditya Birla Group plans to invest INR 150 billion ($2.1 billion) on capacity expansion and setting up new units in different industries. PTI reported that the company plans to allocate about INR 10 billion ($140 million) for mining, mineral and solar sector.

The state also signed 6 MoUs with the Netherlands – and solar was one of the fields. Specifics of this MoU are not known, but Dutch foldable solar panel manufacturer HyET Solar was reported to be signing a MoU with the state to set up a 300 MW solar production facility.

Some of the MoUs were signed for other sources of renewable energy and for sprucing up power distribution network and sub-stations in the state.