The state which is grappling with power blues is looking skywards, literally. The Power brass are looking up to the sun to tide over the perennial crisis and it has initiated steps to attract private investments in the solar power generation sector.
Against the target of purchasing 200 MW power from photo-voltaic projects this year, the UP government is set to seal the deal for 130 MW. These projects are likely to come up in Bundelkhand and eastern UP.
Principal Secretary, Electronics and Renewable Energy Resources, Jeevesh Nandan said that the projects awaits cabinet assent. "Once that is done, the companies could be asked to set up their units at their place of choice," he told 'The Pioneer' recently.
Nandan said the UP government would offer competitive tariff to those willing to set up such plants in 12 months’ time, with the condition to directly sell power generated to UP Power Corporation ltd for 10 years.
At present, solar power generation in the state is only around 12 MW that comes through small projects. The last solar power project of 5 MW was inaugurated by Chief Minister Akhilesh Yadav in Barabanki - the native district of Rural Development minister, Arvind Singh Gope.
The Akhilesh Yadav government launched its Solar Energy Policy with a target to generate 500 MW of power by 2017. The solar plants with over 5 MW capacity would be eligible for incentives.
"The new projects would be between 5 MW and 50 MW capacity. There would be assurance that the UPPCl would purchase the power thus generated at a price decided at the bidding. This price would be finalised by the state cabinet," Jeevesh Nandan said. He said that the prices varies and is expected to hover in the Rs 12-15 per unit bracket. The system of competitive bidding is also adopted in other
states. A similar model for solar power projects is adopted in states like Madhya Pradesh, Orissa and Tamil Nadu.
While Gujarat - a leader in the field, offers around Rs 15 per unit for solar power, states like Rajasthan offer land as an incentive.
Justifying the high cost of solar power, Nandan said that setting up of 1 MW of solar plant costs Rs 10 crore while it is Rs 5 crore in the case of thermal power plants.
In the first phase, UP has decided to only offer to bear the expenditure on construction of transmission line and substation for projects that will come up in Bundelkhand region. For the rest of the state, this cost will be borne by the developer.
In the pre-bid meet recently, some companies demanded that land be given by the UP government on a lease basis as an incentive since land acquisition is a cumbersome process. "The state government will finalise this nitty-gritty," said Jeevesh Nandan.