The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has signed a memorandum of understanding (MoU) with Tehri Hydro Development Corporation of India Limited (THDCIL) to set up an ultra-mega renewable energy park in the state.
The state cabinet has given its consent to set up a joint venture for the development of the park in line with the guidelines laid down by the Ministry of New and Renewable Energy (MNRE).
According to the MoU, the joint venture will have an authorized capital of ₹500 million (~$6.6 million), out of which UPNEDA will have a share of 26%, and Tehri Hydro will have a stake of 74%. The UPNEDA’s equity investment in the joint venture will be ₹130 million (~$1.7 million), whereas, Tehri Hydro’s equity investment will be ₹370 million (~$4.9 million).
Initially, the target is to develop 600 MW of solar capacity, which will see an investment of ₹24 billion (~$315.4 million) at the rate of ₹40 million (~$525,616)/MW.
The solar developers will have to quote a competitive tariff for solar power to be generated at the park. They should also make proper arrangements for the land and connectivity to the nearest substation for the evacuation of power before setting up the project.
According to a study done by the Solar Energy Corporation of India (SECI), once the project will be commissioned, it will provide direct employment to 1,200 people and indirect employment to 6,000 people.
According to Mercom’s India Solar Project Tracker, Uttar Pradesh has 973 MW of large-scale solar projects in operation, and about 1.7 GW capacity is currently under development.
Earlier, it was reported that UPNEDA had issued draft guidelines for setting up of private solar parks in the state. According to the guidelines, the Uttar Pradesh government would provide support in grid strengthening for the development of private solar parks. The state, through its distribution company Uttar Pradesh Power Corporation Limited, would offer to purchase 100 percent power generated from the solar parks.
Meanwhile, Andhra Pradesh has also issued an order with guidelines to implement its 10 GW solar power program for farmers in the state. The program aims to provide nine hours of free power during the day to farmers without increasing the financial burden on the state’s distribution companies.
Rakesh Ranjan is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.