Gujarat tidal project puts Asia in spotlight as market hot spot

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The coastal Indian state of Gujarat has green lighted an initial 50 MW tidal power project, a project that could potentially be scaled up to 250 MW according to the parties involved. Will bigger government pockets dictate a fast-track success story for tidal in Asia rather than in the UK, US and Canada?


By Paul French, Asia correspondent

Publicly approving the Gujarat project, a coastline tidal power project of 50MW with the potential of up to 250MW, is a major break through not just for India, but for the tidal energy industry.

Narendra Modi, the The Right Honourable Chief Minister of Gujarat, pointed out that the tidal plant will be India’s first commercial tidal power plant and the first of its kind in Asia.

The project, reportedly costing Rs 750 crore (approximately US$165m), will be located just off the Gujarat coast in the Arabian Sea.

It is planned that the plant will be fully functional by 2013, according to the Gujarat government.

The partners in the project are London, Australia and Singapore-based marine energy developer Atlantis Resources Corporation and the Gujarat Power Corporation Ltd (GPCL), who have signed a memorandum of understanding (MoU) with the Gujarat government to start development.

It is expected that eventually the plant will scaled up to 250 Mw and the power off-taker will be the Gujarat Power Corporation.

[b]Gulf of Kutch: a perfect spot for turbines[/b]

Speaking from Singapore, Tim Cornelius, CEO of Atlantis Resources Corporation, told Tidal Today that the results of their two-year feasibility study had shown that the Gulf of Kutch, offshore of Gujarat, was close to the perfect location for their turbines – which Atlantis claim are the largest and most powerful tidal power turbines available today.

The Gulf of Kutch, according to Atlantis’s feasibility study is capable of generating 300MW of tidal power resources in the area. Cornelius also argues that Gujarat has already committed to significant investments in solar and wind energy, but was still looking to expand its renewable energy base.

India urgently wishes to secure India’s rapidly growing energy needs and avoid being overly dependent on oil and coal. This fact urged Atlantis to approach the Gujarat government to conduct a feasibility study.

[b]Sufficient upfront costs and big government pockets[/b]

Typically a tidal power plant takes 8-12 years after commissioning to break even and US$165m is a high up front cost. However, Cornelius of Atlantis believes that Gujarat has sufficient money to bear their share of the costs and has a state administration that is committed to new technologies underpinning the region’s economic growth.

Indeed, Gujarat has one of the fastest growing economies in India right now and large Indian conglomerates such as Tata Motors have bases in the state.

Renewables have been a major plank of growth – for instance, the Gujarat government allotted 716 MW of solar power capacity to 34 national and international solar project developers in 2009.

Tim Cornelius believes that Gujarat’s local politicians have shown themselves to be fully committed to long-term investment in renewable energy technologies.

[b]What a difference a year makes[/b]

Just last year, Atlantis unveiled its large size AK1000 1 MW tidal turbine, which features two sets of blades to capture tides whether ebbing or flowing. The AK1000 is currently undergoing tests at the European Marine Energy Centre (EMEC) in Orkney.

In Gujarat, Atlantis is hoping to capitalize on their successes so far which include supplying 400 turbines – both Rolls-Royce 500kW turbines and their own AK1000s to MeyGen, the 378-Mw tidal power project in Pentland Firth, Northern Scotland.

While Atlantis is a proportional shareholder in the project, Cornelius does not expect them to be a developer as such. He sees Atlantis mainly as the turbine supplier to the project.

T[b]idal costs of power expected to be cheaper than solar[/b]

With formal government approval now granted, financing can get underway. Atlantis and the Gujarat Power Corporation can now commence the front-end engineering and design (FEED) phase, which will, crucially, determine the final cost of power per unit from the project.

Mr D.J Pandian, the Chairman and Managing Director of Gujarat Power in the state capital of Gandhinagar, expects the rate to be competitive compared to large solar power projects. Obviously with the long break-even times associated with tidal power, the tariffs need to be attractive to make the project commercially viable.

[b]FEED phase completion and financing target objectives[/b]

Project equity participants will be sought at the completion of the FEED phase. Atlantis’s Cornelius expects the FEED phase to be completed by the end of the year and for financing to get underway promptly.

Other investors are unnamed at present though both Morgan Stanley and the Norwegian renewable energy company Statkraft are currently shareholders in Atlantis.

If financing is successfully secured then, Cornelius believes construction in the Gulf of Kutch could start in either the first or second quarter of 2012 with the first phase hopefully operational by late 2013.

[b]Asia prime target market for expansion[/b]

Once the Gujarat project is underway, Atlantis hopes that this will allow them to find more Asian customers for their large AK1000 turbines.

Other Indian locations as well as China and South Korea (currently the most advanced Asian nation in tidal energy) are prime targets for expansion

[chotu gadu]

Perfect location with backup frm smone like modi...sure this project is gonna be smthng to look out fr...

[I hate caste......]

mana ap vp gallu  unna gas reliance vadiki ammukunnaru.........vedemo anne tesukotche vadi state lo pettukuntunadu..........modi should be pm of India

[ramu]

[quote author=ChittiNaidu link=topic=153312.msg1799651#msg1799651 date=1297199750]
Modi is going to stand out as a seperate Leader in Indian Politics....[img]http://www.gifsoup.com/view3/1236137/indian-flag-flighing-high-o.gif[/img]
People will surely regret for not allowing him to contest as a Prime Ministerial Candidate

MODI rocks////
[/quote]  @gr33d  @gr33d  [img width=320 height=240]http://www.gifsoup.com/view3/1236137/indian-flag-flighing-high-o.gif[/img]