According to reports, power deficit Uttar Pradesh would soon get an investment of about Rs 880 crore in solar power projects totalling 110 Megawatt (Mw).
UP is targetting 500 Mw of solar energy by 2017 under its Solar Power Policy 2013.
Last year, the government had signed power purchase agreements (PPA) with developers on rates ranging from Rs 8.01/unit to Rs 9.33/unit.
A typical solar power plant requires investment of Rs 8 crore per Mw of installed capacity. Initially, the power tariffs of a plant is quite high, however, over a period of time, it would become cheaper for the state.
The developers include, Essel Infraprojects (50 Mw), Moser Baer Clean Energy (20 Mw), Azure Surya (10 Mw), Refex Energy (10 Mw), D K Infracon (10 Mw) and Jackson Power(10 Mw).
In August 2013, the government had issued letters of intent to companies, wherein they were stipulated to complete solar energy project in 13 months, preferably in the arid Bundelkhand region to avail of additional sop of free wheeling in of power to grid.
The nodal agency for these solar projects is UP New andRenewable Energy Development Agency.
UP faces power demand-supply gap of about 20 per cent and is now upgrading its power generation, transmission and distribution infrastructure to meet future energy needs.
UP minister of state for alternative energy Vijay Kumar Mishra had already directed companies to complete land-related formalities by March 31 and secure financial closure of the project by June 30,2014 for the solar energy generation to start from January 2015.
Since solar power plants now don’t require environment clearance, the projects are sped up.
UPNEDA is also working on other clean energy projects spanning hydro and wind segments. A hydro power project needs Rs 7-8 crore investment per Mw, which is more than required for thermal project.
However, there are no running costs for hydro power.