Karnataka shelves microgrid solar project for five villages

The Karnataka government has dropped its plan to install 500 kW microgrid solar units with battery storage in one backward village within each electricity supply company’s jurisdiction, citing financial non-viability.

According to Karnataka Renewable Energy Development Limited (KREDL), which was to implement the project, the villages identified were 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).

K.P. Rudrappaiah, managing director of KREDL, told the government the installed cost for one 500 kW unit is Rs 7.94 crore. The cost for five units would be Rs 39.7 crore. He said small scale raises per-unit costs and would force Escoms to buy expensive power for 25 years, creating a financial burden.

KREDL also flagged a security rule requiring inverters to be turned off when there is no supply from the Escom. With inverters off, batteries cannot supply power during outages, undermining the project goal of village self-reliance.

This is the second renewable project announced in the 2024-25 budget to be dropped. The state recently cancelled a plan for 2,500 public EV charging stations.

According to tender documents available on KREDL’s website, KREDL is focusing on large-scale projects to promote battery energy storage. These include a 250 MW solar PV project with 250 MW/1,100 MWh battery storage at Pavagada Solar Park and a 100 MW solar PV project with 50 MW/130 MWh storage in Kalaburagi. Both projects aim to supply peak power and optimise grid use through tariff-based competitive bidding.

Source: The Hindu