Uttar Pradesh cabinet approves tariffs for 72 MW solar projects

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The Uttar Pradesh state cabinet has approved setting up of three grid-connected solar projects with cumulative capacity of 72 MW in the state, with power purchase agreements as per the winning tariffs. The power generated from these projects will be purchased by Uttar Pradesh Power Corporation Limited  for a period of 25 years.

The cabinet gave its nod to tariff rate of Rs 3.02/KWh for two 20 MW solar projects to be set up by state-run power producer NTPC, and to tariff of Rs 3.05/KWh for 32 MW project by Sukhbir Agro Energy.

The 72 MW capacity was won by the two parties in a 500 MW auction by Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) in June this year.

NTPC will set up its two projects under EPC mode at Auraiya (20 MW floating solar) and Rihand power plant in Sonbhadra district, respectively. Sukhbir Agro Energy project shall come up at Jalaun.

UPNEDA conducted tariff-based competitive bidding for setting up a total of 500 MW solar projects in the third phase, under the state’s Solar Energy Policy 2017.

Bids were received for 90 MW against the tendered capacity of 500 MW. Reverse auction was conducted to reach the final tariff on the bid capacity.

Under the new solar policy, the state government of Uttar Pradesh has set a target of 10,700 MW of solar power generation by 2022. It has so far approved proposals for 1535 MW of solar projects involving investments worth Rs7500 crore.