Geosyndicate Power to set up 25 MW geothermal plant in AP

Geosyndicate Power Private Ltd a Mumbai based energy company will set up the country's first geothermal power plant of 25 MW in the Khammam district of Andhra Pradesh at an investment of INR 300 crore.

A power plant based on geothermal energy harnesses the heat from the earth's inner layers to produce electricity.

The plant is likely to come up by 2012, for which, Geosyndicate has entered into a power purchase agreement with Warangal-based Northern Power Distribution Company.

The Chairman of Geosyndicate, Dr D Chandrasekharam, told Business Line, that per unit cost of electricity would be below INR 10, which would be cheaper than electricity rates from solar farms. The project has not received any financial aid from the Government institution and all the required funds would be raised from the private sector. The company is in the process of raising funds for the project and therefore the debt equity ratio cannot be disclosed, he said.

Geosyndicate is an incubated company of IIT-Bombay with core focus on exploration and production of geothermal energy. Dr D. Chandrasekharam is a well-known geothermal expert and faculty member at Department of Earth Sciences, IIT-Bombay.

Dr Chandrasekharam said that with the advancement of drilling and heat exchanger technology it is becoming easier for the developing countries to harness their huge geothermal energy resources. The country, which had earlier been lagging behind in the geothermal sector, is now making headway, he said.

He said that the Khammam site has a total potential of about 60 MW which would be exploited over a period of time. The land required for the 25 MW plant would be just about an acre. Since geothermal power is produced by non polluting sources, the company would also be looking at earning carbon credits from the project.