MNRE Finalizes Scheme for Development of Ultra Mega Power Projects
Ministry of New and Renewable Energy (MNRE) on 18th December 2014, has notified the final scheme for the development of Solar Parks and Ultra Mega Solar Power Projects in the country. The scheme aims to add 20 GW of solar energy in next 5 years, with a central financial assistance (CFA) of 4050 Crores. Earlier in the September the ministry had presented draft for the scheme.
The lands for the for development of solar parks has been so far identified in Gujarat, Madhya Pradesh, Telangana, Andhra Pradesh, Karnataka, Uttar Pradesh, Meghalaya, J&K (Leh and Kargil), Punjab and Rajasthan.
Timelines: The ministry has defined timelines for the execution of the project, which is given in the table below:
The Scheme also states that there will no wheeling charges applicable for the energy generated. If applicable under open Access, it will be very minimal.
The scheme seems very attractive and it will be interesting to see the response of the stake holders and the investors. The target of 100 GW solar capacity by 2022 will get a huge thrust if the scheme kicks off early with little hurdles.
Since domestic manufacturing is a major area of concern in the current Indian Solar sector, this scheme could have addressed it adequately by providing road map for the same, since the new government is constantly pushing its ‘Manufacture in India’ agenda. DCR also finds no mention here. However this scheme is expected to attract huge foreign investments and private equity funds, which may solve this issue to a small extent, but will be focused mainly on projects only.
The MNRE final document can be accessed here