Along with a private partner, WBGEDCL will execute the project on a public-private partnership basis.
In total, two megawatts (MW) of PV will be installed, alongside eight MW of biodiesel.
Sanipada Gon Chaudhuri, former WBGEDC managing director, has said this will be the first-of-its-kind green power project that utilizes a combination of PV and biodiesel.
Cylone Alia washed away several PV systems in 2009 in some of the villages, hence the need for a new means of electricity.
Union minister for new and renewable energy, Farooq Abdullah has proposed that the state government work on a plan to hand over as many Sunderbans islands to private entrepreneurs as possible, to enable 24-hour supply of power generated from renewable energy sources.