NHPC Approves Rs 797 Cr For 1.2 GW Uttar Pradesh’s Solar Park Project

NHPC’s Board of Directors has approved the development of a 1,200 MW solar park in Uttar Pradesh’s Jalaun district, the company said in an exchange filing. It said the project will involve an estimated investment of Rs 796.96 crore, including interest during construction (IDC) of Rs 42.69 crore. The company will invest Rs 239.09 crore in equity in Bundelkhand Saur Urja Limited (BSUL), a subsidiary of NHPC and a joint venture with the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).  BSUL is the executing firm for the project. This project falls under Mode 8 of the Ministry of New and Renewable Energy’s Ultra Mega Renewable Energy Power Parks (UMREPP) scheme.

Solar Projects On The Rise In Uttar Pradesh 

The solar park project in Uttar Pradesh (UP) would support the state target of adding 22 GW of solar energy capacity, during a review meeting chaired by Union Minister for Consumer Affairs, Food and Public Distribution and New and Renewable Energy Pralhad Joshi, and Uttar Pradesh Chief Minister (CM) Yogi Adityanath.

Companies like Serentica Renewables have also signed a power purchase agreement with state-run NTPC Ltd to supply 200 MW of firm and dispatchable renewable energy (FDRE) to Uttar Pradesh’s distribution companies (DISCOMS).  The project will combine solar, wind, and battery storage assets across multiple states to deliver on-demand renewable power, particularly during the state’s morning and evening peak hours. The integration of large-scale energy storage in this project would ensure a consistent renewable power supply, even during periods of low generation.

While there is nothing wrong with the solar park approach, on the ground, the slack being seen in capacity additions is not a good sign. Smaller schemes like PM Suryaghar, PMKUSUM or even the open access regulations for corporates are progressing far too slowly, not a good sign for the state that is trying to shake off its image as a laggard to a dynamic one now.