Uttar Pradesh to get Solarized

Indian states have been looking to expand their solar capacity as the country suffers from massive fossil fuel shortages particularly coal. Most of India’s electricity is generated throughthermal power and most of its new capacity is also expected to be thermal. However, coal mining is a huge mess in India with the previous government having massively mismanaged the whole mining and coal sector. The huge corruption in awarding of coal contracts resulted in the judiciary cancelling almost all coal mining awards in the last 20 years. This has led to huge disruption not only in the power industry, but also the steel industry which heavily depends on coal.

Most of the states are looking at solar energy which can be set up very quickly these days (around 12 months). The costs have also fallen sharply to only Rs 6-7 units in India, which is competitive compared to gas and imported coal. It is also green and faces less environmental clearance issues. Solar energy does not face any fuel price rise or fuel shortage issues, since India is very abundant in solar insolation.

Uttar Pradesh one of the largest and most backward states in India is also trying to copy other states in pushing solar energy generation. But its efforts have not borne fruit, as the state remains mired in bureaucratic lethargy and executive corruption. The state is looking to set up solar parks in different parts of the state on government land. It has also signed up with some solar developers to build solar farms. But the progress has been very slow as compared to Madhya Pradesh, which has greatly simplified regulations and also reduced transmission charges.

Read more about the “Solar Parks” scheme in India here.

Uttar Pradesh has roped in a government hydro energy company to build a 50 MW plant in the state and signed a MOU. I don’t think it’s an impressive move. NHPC is not a great operator as the company has been slow in building hydro plants, which is its core strength and has never built a solar power plant. Instead of looking at piecemeal solutions, Uttar Pradesh should copy Madhya Pradesh in encouraging solar developers to set up power plants in the state. They will be faster and more efficient than the government owned behemoths like NHPC.

Hindu 

State-run NHPC has signed an agreement with Uttar Pradesh New and Renewable Energy Development Agency for setting up its first solar power project in the State at a cost of Rs 400 crore.“Promoters’ agreement has been signed between Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) and NHPC for setting up a joint venture company for implementation of solar power project in Uttar Pradesh,” NHPC said in a statement.Initially, this joint venture company proposes to implement a 50-MW grid connected solar power project at Parason, Uttar Pradesh, for which an initial pact was signed UPNEDA and NHPC in August 2013, the statement said.