The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has issued draft guidelines for setting up a private solar park in the state. The draft is open for comments up to July 31, 2018.

Per the draft guidelines, “The Uttar Pradesh state government will provide support in grid strengthening for development of private solar parks. The state through its distribution company (DISCOM) Uttar Pradesh Power Corporation Limited (UPPCL), will offer to purchase 100 percent power generated from the solar park. The state will also allow the sale of entire energy generated to any third party through open access from such a solar park.”

Under the draft guidelines, a private player can develop solar park either by taking the Ministry of New and Renewable Energy (MNRE) grant or on its own.

In case a solar park is being developed with MNRE support and 100 percent power is to be supplied to UPPCL, then the following clauses will apply:

• No state agency will have any equity share in this.
• The private player will be the solar park developer.
• The solar park developer will be responsible for land acquisition for park development.
• The minimum capacity must be 50 MW and the maximum will be 200 MW.
• MNRE grant of up to 30 percent of project cost or Rs.1.2 million/MW will be made available to park developers.
• Park developers will be chosen through bidding.
• State transmission utility (STU) will provide the transmission infrastructure.
• The developer will have 18 months to develop the solar park.

In case a solar park is being developed with MNRE support, but power is to be sold to the third party, then the following clauses will apply:

• No state agency will have any equity share in this.
• The private player will be the solar park developer.
• The solar park developer will be responsible for land acquisition for park development.
• The minimum capacity must be 50 MW.
• MNRE grant of up to 30 percent of project cost or Rs.1.2 million/MW will be made available to park developers.
• Park developers will be chosen through bidding.
• State transmission utility (STU) or central transmission utility (CTU) will provide the transmission infrastructure.
• The developer will have 18 months to develop the solar park.

In case a solar park is being developed without MNRE support, the following clauses will apply:

• No state agency will have any equity share.
• The solar park developer will not be provided with any MNRE support.
• The solar park developer will be responsible for land acquisition for park development.
• A consortium can apply to UPNEDA to develop the park.
• The minimum capacity will be 100 MW.
• To gain long-term open access, the park developer will have to apply to MNRE.
• Once MNRE accepts the application and provides the project solar park status, the park developer must submit records of land acquisition to MNRE.
• Solar park developers will be responsible for the connectivity of the solar park to the grid.
• In special circumstances, if an appropriate tract of land is not available, there is a provision to reduce capacity at one site to 50 MW, but the solar park developer will have to develop another park for the remaining 50 MW at a separate location.
• The park developer will have 24 months to complete the project.

When contacted, a UPNEDA official said, “We have issued draft guidelines in the best interests of the sector. Provisions have been made where a project can be developed in Uttar Pradesh solely for supply to other areas.”

In December 2017, Uttar Pradesh government finalized the state’s solar policy and set a target of 10,700 MW for solar power, including 4,300 MW from rooftop solar projects, by FY 2022.  Recently, Uttar Pradesh Electricity Regulatory Commission (UPERC) amended its Captive and Renewable Energy Generating Projects (CRE) Regulations 2014 with changes that are expected to reduce the cost of solar power procured from standalone projects in the state.

Once these guidelines are finalized, it is expected to spur activity in the state’s solar sector.

Image credit: Azure Power