UPNEDA Invites Bids for 200-MW Solar Park in Uttar Pradesh

UPNEDA releases request for proposal for selection of Solar Power Park Developer for establishment of 200 MW Solar Park in Uttar Pradesh

Uttar Pradesh New and Renewable Energy Development Agency or UPNEDA  is inviting bids to develop 200-MW solar park in the state. The process will be tariff based competitive bidding and does not have a tariff ceiling.

In a recent auction in October, UPNEDA had invited bids for 550 MW of grid connected solar PV power projects, but had kept a tariff ceiling of Rs 3.10/kWh. Meanwhile, higher land and borrowing costs kept solar power tariff above Rs 3 at the UPNEDA 500-MW grid- connected solar auction, in which NTPC participated for the first time. The lowest bids were from NTPC and Maheshwari Mining and Energy at Rs 3.17 per unit.

Read More: Uttar Pradesh’s UPNEDA Invites Bids for a 550 MW Solar projects

According to the documents, UPNEDA will select solar power park developer (SPPD) for setting up of minimum 50 MW capacity Solar Park (total capacity 200 MW). The maximum capacity of Solar Park to be allocated to any company will be 200MW. The extent of land that may be required to set up 200 MW capacity solar park is expected to be 1000 acres.

The PPA will be for 25 Years and the developer(s), DISCOMs will offer to purchase 100 percent power generated by the solar park.

The solar park will be developed according to the guidelines of Uttar Pradesh Solar Energy Policy 2017 for setting up private solar park in the state under and the guidelines issued by the Ministry of New and Renewables Energy (MNRE).

Important dates:

Last date for bid submission:  10th December 2018

Technical bids to open: 11th December 2018

Financial bids to open: 19th December 2018

This network will connect with the Intra State Transmission System (ISTS) or State Transmission System and Uttar Pradesh government will provide support for strengthening the grid network.

The selected solar developers will be responsible for land acquisition, levelling, creating  internal transmission, forecasting and scheduling as well as O&M services.

The Uttar Pradesh government last year in its solar policy has set a target of 10,700 MW for solar power, which also includes 4,300 MW from rooftop solar projects, by the year 2022. It has been tweaking its policies to better attract the developers into its state. On 21st March this year, Uttar Pradesh Electricity Regulatory Commission (UPERC), reduced transmission charges, that must be paid by standalone solar projects. The amendments stated that there is an “exemption of 50 percent on wheeling charges and transmission charges on intrastate sale of power”.

For the interstate sale of solar power by the intrastate transmission system, it did away with wheeling charges and transmission charges. The exemption will be applied in accordance with the technical feasibility and UPERC regulations.

New Draft Regulations for Net Metering of Rooftop Solar Projects

UPERC brought changes for rooftop solar sector too. Last week it introduced new draft Regulations for Net Metering of Rooftop Solar Projects called RSPV Regulations 2019. Key Highlights are as follows:

  • Consumers can set up rooftop solar projects of up to 2 MW. The capacity of the rooftop project to be installed will not be less than 1 kW and will not exceed 2 MW
  • Eligible consumer has a choice between gross-metering arrangement or net -metering arrangement to install rooftop solar installation.
  • Third-party owners who are in a commercial agreement for the rooftop in the premises of the consumers will be entitled to install rooftop solar projects under gross-metering arrangement with the DISCOM for a capacity equal to the cumulative capacity of the prescribed limits of rooftop solar PV capacity for each eligible consumer.
  • Third-party owners who have entered into a lease or commercial agreement for the rooftop in the premises of a group of consumer, will also be entitled to install rooftop solar PV system under net-metering arrangement with the DISCOM.
  • Eligible consumer or third-party owner availing gross-metering arrangement will not be allowed to apply for net-metering arrangement within the same premises. The same will hold true for net-metering consumers.
  • If the consumer or third-party owner installs solar rooftop under gross-metering, the entire power generated will be injected to the distribution system of the DISCOM at the interconnection point. For the net-metering, eligible consumer can inject surplus power to the distribution system of DISCOM at the interconnection point.
  • To provide flexibility to rooftop solar power prosumer, a provision of mutual sale and purchase of electricity through peer-to-peer transaction with proper accounting and billing mechanism (implemented with the help of blockchain technology) has now been provided.
  • State authorities can undertake rooftop solar projects above 2 MW capacity through alternative mechanisms.
  • Both net-metering and gross-metering of the electricity generation by a consumer, which is not an obligated entity, will qualify towards compliance of renewable purchase obligation (RPO) for the DISCOM.

Read More: ReInvest 2018: UP makes its pitch, but Investors remain Luke warm

The policy reinvention has been keeping in line with the UP government attempts seen at various events like Re-Invest 2018. The state officials and dignitaries have been welcoming renewable companies to come and invest in the state.

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