Chennai: BMW AG, the world’s biggest maker of luxury cars, intends to meet 20% of its electricity needs from solar power at its factory in India by the end of 2016.
The German company will seek bids to build a solar farm in the first quarter of next year, said Robert Frittrang, managing director of the factory near Chennai. The successful bidder can install panels on top of the plant.
The tariff for solar electricity is fixed for five years and works out cheaper than electricity purchased from the local grid, Frittrang said. The carmaker, which is based in Munich, currently gets 6% of its electricity from rooftop solar cells in Chennai.
India’s Prime Minister Narendra Modi plans to quadruple renewable power capacity to 175 gigawatts by 2022 to cut blackouts in the world’s second most populated nation. India’s central bank in April asked lenders to treat loans to renewable energy projects as a priority, making it easier for solar developers to access funding.
India plans to more than double the share of renewables in energy consumption to 15% in five years, according to Piyush Goyal, minister of coal, power and renewable energy. Bloomberg
Source: Mint; 08 May 2015