Lucknow Entrepreneur seeks $6.35 million for 1 MW Solar power plant on EBay
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Lucknow Entrepreneur seeks $6.35 million for 1 MW Solar power plant on EBay

eBay is known for the weird things that get sold on the it. JK Rowling’s chair was sold on eBay for 20,000 pounds. Cabbage patch doll of Donald Trump was sold for 5000 pounds. And there are lot of other things which were sold on eBay. But none were this exciting.

 

Lucknow based entrepreneur is seeking a funding of 31.75 crores ($6.35 million) for setting up a 1 MW solar power plant. He is selling his business plan.

solarplant

Yogi Tripathi who runs a Cine Projector which assembles LCD projectors for home entertainment is impressed by the Indian government’s solar push and wants to get into solar power plants. His logic is simple :

Mr. Yogi Tripathi, eBay India seller says “With the Indian Government encouraging solar power plants and ready to purchase electricity from Solar Power Plant at Rs.15 per KWH induced me to build up my thought of setting up a Solar Power Plant in India. eBay India has always given me a great platform to reach out to buyers across the globe and I am now targeting international investors, which would have been prohibitive through any other advertising medium.”  (Press Release)

Mr. Tripathi is not just seeking money. He also gave a detailed overview of what goes into the setting up of a solar power plant with a detailed break up :

Single sun solar cells of 1 MW or 1000 KW    – Rs 17.50 crore (US $ 3.50 million)

Double axis trackers costing approx$1/W       – Rs 5.00 crore (US $ 1.00 million)

Grid feed Inverters (MPPT) 250 Kw x 4           -Rs 2.00 crore (US $ 0.40 million)

Special UV / IR Filter coverglass                     – Rs 3.75 crore (US $ 0.75 million)

Land around 10-15 acres                               – Rs 2.50 crore (US $0.50 million)

Plant site development & erection                   – Rs 1.00 crore (US $0.20 million)

I am neither an entrepreneur nor a venture capitalist but I can say this. The plan given by Mr. Tripathi is very short, specific and gets attention. The plan also talks about how the solar power plant makes money.

A 1 MW solar power plant makes about 3.5 crores (0.7 million) money per year.

At this rate the company will break-even in 10 years and the average life span of a solar power plant is 25 years. So the investor won’t see the profits until 11th year.

India’s installed capacity of around 150,000 MW does not meet India’s needs. It falls short by 15%. The regular power producers are working hard to meet the target. There are new installations by Adani Power which promise to add 9900 MW to the grid. Reliance Power is also adding to the grid. That still leaves us with a shortage.

Besides most (52%) of India’s power comes from coal which directly contributes to India’s emissions. Solar power is a clean alternative and with the kind of sunlight India receives everybody is amazed at why India doesn’t tap the sun.

Smaller projects like the one initiated by Mr Tripathy go a long way. The reason why we need small projects is, generating solar power is land intensive. Generating a 1000 MW solar power plant requires huge land (a little above 5000 acres) and the Singur nightmare still haunts us.

Considering the long gestation period to realize the investments not many investors will come forward. But, someone who has a long-term view might help Mr. Tripathi.

PS : When I tried to click the ebay link provided I get a ‘listing is removed’ message.

PPS : What does 1 MW mean to India? As per wiki.answers 1 MW power 800 households in the US for a year. That would almost be double in India as the average Indian household doesn’t consume as much.

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