Rajasthan and Andhra Pradesh Commission Higher Capacity in Solar Park Scheme

In a significant development, two Indian states, Rajasthan and Andhra Pradesh, have successfully commissioned higher capacities under the "Development of Solar Parks and Ultra Mega Solar Power Projects" scheme. This scheme, initiated in December 2014 with an initial capacity of 20,000 MW, aimed at fostering the rapid development of utility-scale solar projects in the country.

The solar park scheme witnessed a substantial expansion in March 2017, with the capacity being increased to 40,000 MW. The overarching goal was to establish a minimum of 50 solar parks, with the timeline extending until 2023-24. The scheme operates on a plug-and-play basis, providing essential infrastructure such as land, roads, power evacuation systems, and water facilities, along with all necessary clearances and approvals to renewable energy (RE) developers.

Typically, the capacity of solar parks is 500 MW and above, but smaller parks (up to 20 MW) are considered in states or union territories facing a shortage of non-agricultural land. The land requirement is estimated at 4-5 acres per MW for setting up solar parks.

As of November 30, 2023, a total of 50 solar parks with an aggregate capacity of 37,490 MW have been sanctioned under the scheme. Out of these, 11 solar parks with a combined capacity of 8,521 MW have been completed, while 8 solar parks with an aggregate capacity of 4,910 MW are partially completed. This brings the total commissioned capacity to 10,401 MW across states, with four states yet to commission any capacity.

Among the states leading in sanctioned capacities, Rajasthan, Madhya Pradesh, Uttar Pradesh, Gujarat, and Andhra Pradesh have been granted approval for 9 parks (8,276 MW), 8 parks (4,180 MW), 7 parks (3,730 MW), 7 parks (12,150 MW), and 5 parks (4,200 MW), respectively.

As of November this year, Rajasthan has commissioned 3,065 MW of capacity, while Andhra Pradesh has commissioned 3,050 MW. Karnataka and Madhya Pradesh have commissioned 2,000 MW and 1,000 MW capacity, respectively.

Under the solar park scheme, the Union Ministry of New and Renewable Energy provides Central Financial Assistance (CFA) of up to ₹25 lakh per solar park for the preparation of a Detailed Project Report (DPR). Additionally, CFA of up to ₹20 lakh per MW or 30% of the project cost, including grid-connectivity cost, is provided for achieving the scheme's prescribed milestones.

The total Central Grants approved under the Scheme amount to ₹8,100 crore, with the Solar Energy Corporation of India and the Indian Renewable Energy Development Agency (IREDA) overseeing the implementation and funding aspects of the scheme.

HBL