The Ministry of New and Renewable Energy (MNRE) has issued an order explaining the rules for state distribution companies (DISCOMs) to purchase power produced in solar parks in the state.

The MNRE has issued a new order stating, “The state government in which the solar park is being developed must agree to buy a minimum 20 percent of power produced in the park through its DISCOMs. If the state has agreed to buy more than 20 percent of power from one or more solar parks in the state, then the purchase of lower capacity from other solar parks in the state is allowed so that the state ends up purchasing a minimum 20 percent of aggregate power produced in all solar parks in that state.”

This provides clarity to park developers and project developers as the prior order did not address states with multiple parks.

An MNRE official told Mercom, “this clarification was necessary as it will avoid delays between DISCOMs and park developers relating quantum of power purchase.” It also shows the park and project developers that there is an assured off-taker (the state) of power from each and every solar park, added the MNRE official.

The government in March of this year approved the increase in solar park capacity from 20,000 MW to 40,000 MW to develop a minimum of 50 solar parks of 500 MW each by financial year 2019-20.

Image Credit: Mike Staples