Bids invited for solar energy generation, says UP

Uttar Pradesh government will soon float bid document to attract private investment in the solar energy space.

The government would invite bids from parties willing to supply energy below the tariff of Rs 4.70 per unit quoted by National Thermal Power Corporation (NTPC) for bundled power.

“The bids would be invited from companies ready to provide us power below the tariff quoted by NTPC,” Uttar Pradesh Power Corporation Limited (UPPCL) CMD and Energy Secretary Navneet Sehgal told Business Standard.

Bundled power tariff is the final tariff charged by the company by calculating a mean of thermal and solar power generation.

He said stand-alone solar power tariff was as high as Rs 13 per unit and the state would prefer a company, which could provide bundled power at levels cheaper than Rs 4.70 per unit.

The state is likely to provide land on lease for such project and is looking at solar power generation in the arid Bundelkhand region of Uttar Pradesh, where ample swathes are available

Sehgal said the bid document was almost ready and would soon be floated publicly.

Recently, the union new and renewable energy ministry had complimented the progress made by the state in off-grid solar energy space, but said grid solar energy was still to take off unlike Rajasthan and Gujarat.

Ministry Director A Raza had said the state electricity regulatory commission should first declare solar power tariffs before the entrepreneurs could prospect the opportunity.

Off-grid energy is for captive use, while grid power can be transmitted to other locations for distribution.

“Grid solar energy capacity depends upon the choice of private entrepreneurs to evince interest in the project and the proactive stance of the respective state governments to attract them,” Raza said.

A stand-alone solar energy plant would typically require five acre barren land and Rs 15 crore investment for every megawatt vis-à-vis Rs 5 crore for thermal energy.

Private sector Welspun Energy is looking at the possibility of 100 Mw plant in the state in the next financial year. “UP has a huge potential in solar energy space, which will also help the state overcome prevailing power deficit,” Welspun Energy Managing Director Vineet Mittal had earlier told Business Standard.

He said the ‘terai’ region could be ideal to set up solar energy plants, since they received good solar radiation.