One of the largest states of India, Uttar Pradesh is aiming to achieve 16 GW of solar power capacity by 2026-27 under its draft Solar Energy Policy 2022, comprising 10 GW utility scale, 4 GW rooftop solar and 2 GW distributed solar projects.
It estimates this capacity to lead to generation of 10,000 jobs. Power generated is proposed to be purchased by Uttar Pradesh Power Corporation Ltd (UPPCL) through its electricity distribution companies (discoms) to meet their Renewable Purchase Obligation (RPO).
As per the draft, the state will make efforts to develop solar power projects for captive consumption and sale of power to 3rd parties, both interstate and intrastate, other than the UPPCL. Solar parks will also be promoted utilizing waste lands in the state.
Utility grid scale solar power projects of 500 kW to 5 MW range will be promoted for a total capacity of 2 GW during the policy duration to promote solarization of segregated agriculture feeders. "Out of total 4390 existing Agriculture feeders in the State 2277 Agriculture feeders of capacity 2200 MW have been segregated. The State is in the process of segregating these Agriculture feeders and subsequently solarizing them," reads the draft.
For grid connectivity of utility scale projects of 5 MW and above in Bundelkhand and Purvanchal region, state government will bear the cost for construction of maximum transmission line length, but project developers will construct the transmission line on its own.
Developers will be able to also set up projects with an intention to sell power to 3rd party or for 100% captive use, or part captive use and sell part generation to 3rd party, to target solarization of power guzzler industries so as to reduce their thermal demand. For open access projects, the government will provide incentives.
Floating, reservoir top, canal top solar projects will be auctioned to supply power to the discom. In addition, solar installations of 500 MW capacity will be promoted to be installed along the expressways. Land along railway tracks will also be used for solar power generation.
The state will facilitate installation of rooftop solar systems and net metering in residential, government/government owned public sector institutions and educational institutions. Specifically, 500 MW rooftop solar capacity will be targeted in government buildings and government public sector undertakings (PSU) buildings, 40 MW will be installed for at least 21,000 un-electrified primary schools, among other government buildings.
A total of 20 cities in the state will be developed as solar cities covering 1 million residential households in 5 years with the help of rooftop solar installations. These are Lucknow, Kanpur, Prayagraj, Agra, Varanasi, Ghaziabad, Meerut, Bareilly, Aligarh, Moradabad, Saharanpur, Gorakhpur, Noida, Firozabad, Jhansi, Muzaffarnagar, Mathura, Ayodhya, Azamgarh, Mirzapur.
For off-grid installations, it will focus on hybrid systems, solar power plants, solar streetlights and solar PV pumps in anganwadi centers, schools, and the like. Solar cold storages will also be promoted with a view to increase the shelf life of agricultural produce and enhance the farmer's income, along with setting up stand-alone solar power pack systems to provide electricity to households in remote villages/hamlets.
To promote the state as a destination for solar energy equipment manufacturing, the state will provide conducive eco system and also offer 100% exemption in electricity duty for 10 years.
The nodal agency for the implementation of this policy will be the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) that will facilitate project developers and act as a single window to cater to all types of solar projects while also carrying out competitive auctions.
UPNEDA will also create a land bank across the state, especially Bundelkhand, to be provided to state government and central government PSU on lease for 30 years. The PSUs can lease land for INR 1.00 per acre per year. Private players will also be eligible for 30-year lease on a rent fixed by the government.
Draft Solar Energy Policy 2022 of the UP government is available on UPNEDA's website.
According to the Ministry of New and Renewable Energy (MNRE), till July 31, 2022 Uttar Pradesh had installed 1.85 GW of ground mounted solar, 258.78 MW rooftop solar and 134.28 MW off-grid solar in the state, taking the total to 2.24 GW.