Gensol Secures ₹1.39 Billion Solar EPC Contract from Sarda Energy

The captive solar project will have a capacity of 33 MW and will be developed in Chhattisgarh

January 17, 2024


Engineering and consulting firm Gensol Engineering has secured an engineering, procurement, and construction (EPC) contract for a 33 MWac (50 MWdc) captive solar power project from the steel and ferro alloys manufacturer Sarda Energy and Minerals to meet power requirements for its Kharora plant in Chhattisgarh.

The project is expected to cost about ₹1.50 billion (~$18.06 million), according to Sarda Energy.

Gensol will undertake the design engineering, procurement, construction, and commissioning of the solar power project with the order valued at ₹1.39 billion (~$16.7 million). The project is scheduled for completion within a six-month timeline, Gensol said in a statement.

Gensol has installed ground-mounted and rooftop solar power projects with a combined capacity of over 600 MW to date.

“Known for its rich mineral deposits and burgeoning industrial sector, Chhattisgarh presents a dynamic market with immense potential for renewable energy integration,” said Ali Imran Naqvi, CEO (Head – BD & Projects) of Gensol Engineering.

“This project aligns with our vision to tap into such high-growth areas and to contribute to a greener, cleaner tomorrow,” he added.

Chhattisgarh has made rapid strides toward expanding the solar open access market during the third quarter of 2023. The state accounted for 3.5% of India’s total open access solar capacity, making it the ninth highest in the country, according to the Q3 2023 Mercom India Solar Open Access Market Report.

The state’s recent policy adjustments, particularly focused on green open access, have boosted the state’s overall solar capacity. It added 28 MW open access solar in the third quarter alone.

India added 907.3 MW of open access solar capacity in Q3 2023, up 36.1% from 666.4 MW in the previous quarter.

Textile, mining, packaging, telecommunications, steel, cement, information technology, automotive, chemicals, pulp and paper, fast-moving consumer goods, and a few other industries, along with flour mills, contributed to the open access solar capacity additions in Q3 2023.

Captive and group captive projects continue to drive the open access solar capacity additions. Several consumers are switching to captive and group captive projects instead of exchange-based procurement, according to Mercom India Research.

Electricity constitutes a major portion of the operational expenses of the cement, steel, and mining industries. The opportunity to reduce costs and meet the net zero targets are incentives for open access solar adoption.