Aman Arora, Punjab's minister of new and renewable energy sources, presided over the meeting when the decision was made.
According to Arora, the proposed 200MW canal-top solar project will be built in stages, with SOMW added in the first stage. The installation of projects with remaining capacity will happen in later phases. He added that the Punjab Energy Development Agency (PEDA) will carry out these projects in build, operate, and own (BOO) mode.
Arora noted that viability gap funding (VGF), a programme run by the Union Ministry of Finance's Department of Economic Affairs, has been proposed to fund these projects' establishment.
The canal-top solar power plants will be constructed on narrower, smaller distributaries, requiring less civil construction. After accounting for 20 percent VGF, the cost of the canal top solar PV installations is predicted to be around Rs 5 crore per megawatt.
The 200 MW canal-top solar PV projects will prevent the evaporation of canal water and save at least 1,000 acres of valuable agricultural land. The projects are also expected to create job opportunities for the local youths.
To use the potential area of lakes and reservoirs, floating solar PV is also a new idea being adopted in the nation. This will also result in the preservation of thousands of acres of agricultural land. After accounting for 20% VGF, the price of floating solar PV projects will be about Rs 4.80 crore per MW.
What Is Build-Own-Operate?
The build-own-operate (BOO) is a project delivery model that is commonly used for large, complex PPP infrastructure projects. A typical BOO project involves a government department allowing a private company to finance, build, and operate infrastructure for a set period of time, with the private company owning the infrastructure in perpetuity.
The BOO model moves the country closer to privatisation. It is a method for an entity to use private capital to build needed infrastructure while freeing up resources for other pressing missions.
