MNRE’s draft scheme for ultra mega solar power projects

MNRE plans to set up 25 solar parks, each with a capacity of 500 to 1000MW, thereby targeting a capacity of around 20,000MW of solar power

EB Bureau

Wednesday, October 29. 2014: The Ministry of New and Renewable Energy (MNRE) has recently drafted a scheme for Ultra Mega Solar Power Projects (UMSPP). This step has been initiated to build colossal solar projects in order to bring down the cost of solar parks. Therefore, each

UMSPP is to have a capacity of 500MW or above, according to the plans. There are some developers who are keen to take up mammoth projects. Land has been identified in states like Gujarat, Rajasthan, Jammu and Kashmir (Leh and Kargil) and Madhya Pradesh. The solar parks will be developed in collaboration with the state governments. The Solar Energy Corporation of India (SECI), on behalf of the Government of India (GoI), will be the implementing agency. SECI will handle the funds to be made available under the scheme, on behalf of the GoI.

The scheme

Through this scheme, MNRE plans to set up 25 solar parks, each with a capacity of 500 to 1000MW, thereby targeting a capacity of around 20,000MW of solar power. These solar parks will be installed over a period of five years. Later, other solar projects may follow or come up based on demand and the interest shown by developers (including private players).

Eligibility criteria

As per the draft policy, all the states and Union Territories (UT) are eligible for benefits under the scheme. At the state level, solar parks will enable the states to bring in significant investments from project developers and meet their renewable purchase obligation (RPO) mandates. This will also lead to employment opportunities for the local population.

Capacity of solar projects

According to the scheme, a solar park, in order to be taken up for development, should have a minimum capacity of 500MW and a maximum capacity of 1000MW. Smaller parks of 100MW and above may be considered in the north-east, Himachal Pradesh, Uttarakhand and Jammu and Kashmir. Parks with a capacity of 100MW and above may also be considered in UTs and small states with a population of less than 20 million. The government may also consider developing parks with a capacity higher than 1000MW under special circumstances.

Land acquisition

The state governments have been entrusted with the task of identifying land to set up the solar parks. It will be the responsibility of the state government to make the land available. States are being encouraged to identify sites that receive good solar radiation and are closer to power grids.

Facilities offered

The solar park will provide specialised services and offer incentives to private developers investing in solar energy generation. The implementing agency is tasked with acquiring the land for the park, cleaning it, levelling it and allocating the plots for individual projects. Apart from this, the agency will also be responsible for furnishing the following facilities for the development of the solar park:

• Land approval for installation of solar power plants and the necessary permissions including change of land use, etc.

• Road connectivity to each plot of land.

• Water availability for construction as well as running of power plants.

• Flood reduction measures like flood discharge, internal drainage, etc.

• Power for construction.

• Telecommunication facilities.

• Transmission facility consisting of a pooling station that will be connected to individual projects through a network of underground cables or overhead lines.

• Housing facilities for basic manpower along with parking, warehouses, etc.

The draft scheme also states that MNRE will put in efforts to tie up with multilateral or bilateral funding agencies to fully or partially finance the solar parks.