Solar Power Policy: Uttar Pradesh

The State of Uttar Pradesh is endowed with vast potential of solar power and the Government is keen to tap this resource to improve the availability of power in the State by promoting the establishment of solar energy based power projects. The key features of the policy are enlisted below:

Objective:

• To promote generation and use of clean and green power in the State by harnessing solar energy.
• To put in place an appropriate investment climate which could stimulate private sector participation in development of solar power
• To spread environmental awareness among the general public.
• To contribute to productive use of wastelands
• To enhance skills and create employment opportunities.
• To promote establishment of local manufacturing facilities.
• To build capacity in the State to initiate and sustain, use and effective management of newer technologies.

Operative Period:

This Policy is valid till 31^st of March, 2017.

Eligibility:

• Project developers will have to compulsorily participate in separately invited competitive tariff based bidding for selection to set up solar Power Projects of capacity less than 5 MWs.
• Separate bidding will be carried out for projects less than 05 MWs capacity and projects of capacity more than 05 MWs. Maximum total capacity for projects less than 05 MWs will be 20 MWs.
• Selection of the bidders shall be done on the basis of lowest quoted tariff.
• No fossil fuels: coal, gas, lignite, naphtha, wood etc. shall be allowed to be used in a solar thermal power project.

Benefits:

• Solar Power Project will be allotted to the project developer for a period of 12 years.
• Uttar Pradesh Power Corporation Limited (UPPCL) will sign a Power Purchase Government(PPA) with the Project Developer and will buy the energy produced on bid price.
• The difference between bid price and production cost will be borne by the Uttar Pradesh Government.
• Provision of Special Incentive will be made for the investment of more than 500 Crores in the solar power project.
• Assistance in arranging water supply, roads etc.

Time limit for commissioning of Solar Projects of capacity less than 25 MW will be within 13 months, for more than 25 MW will be 18 months and 28 months in case of Solar Thermal Projects from the date of signing of PPA.

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