Development of Solar Parks and Ultra Mega Solar Power Projects

Objective of Development of Solar Parks and Ultra Mega Solar Power Projects

Solar power projects set up anywhere in the country, however the scattering of solar power projects leads to higher project cost per MW and higher transmission losses. Individual projects of smaller capacity incur significant expenses in site development, drawing separate transmission lines to nearest substation, procuring water and in creation of other necessary infrastructure.

It also takes a long time for project developers to acquire land, get change of land use and various permissions, etc.

which delays the project. To overcome these challenges, the scheme for “Development of Solar Parks and Ultra-Mega Solar Power Projects” was roll out in December,

2014 with an objective to facilitate the solar project developers to set up projects in a plug and play model. Development of Solar Parks and Ultra Mega Solar Power Projects

Salient Features

• The scheme for “Development of Solar Parks and Ultra Mega Solar Power Projects” was roll out Ministry of New & Renewable Energy on 12-12-2014. Under
• this scheme, it was proposed to set up at least 25 Solar Parks and Ultra Mega Solar Power Projects targeting over 20,000 MW of solar power installed capacity within a span of
• 5 years starting from 2014-15.
• The capacity of the Scheme has enhanced from 20,000 MW to 40,000 MW vide this Ministry’s order dated 21-03-2017. These parks are propos to set up by 2021-22.
• The scheme envisages supporting the States/UTs in setting up solar parks at various locations in
• the country with a view to create required infrastructure for setting up of solar power projects. The solar parks provide suitable developed land with all clearances, transmission system, water access, road connectivity, communication network, etc.
• The scheme facilitates and speed up installation of grid connected solar power projects for electricity generation on a large scale.
• All the States and Union Territories are eligible for getting benefit under the scheme.
• The capacity of the solar parks shall be 500 MW and above. However, smaller parks are also considered where contiguous land difficult to acquire in view of difficult terrain and where there is acute shortage of non-agricultural land.
• The solar parks are develop in collaboration with the State Governments and their agencies, CPSUs, and private entrepreneurs. The implementing agency is termed as Solar Power Park Developer (SPPD). There are 7 modes for selection of SPPDs.

CFA Pattern:

• Under the scheme, the Ministry provides Central Financial Assistance (CFA) of up to Rs. 25 lakh per solar park for preparation of Detailed Project Report (DPR). Beside this,
• CFA of up to Rs. 20.00 lakh per MW or 30% of the project cost, including Grid-connectivity cost, whichever is lower, is also provided on achieving
• the milestones prescribed in the scheme.

• the CFA of Rs. 20 Lakh /MW is apportionon 60:40 basis towards development of internal infrastructure of solar park to the SPPD and for development of external transmission system to Central Transmission Utility (CTU)/ State Transmission Utility (STU) respectively

• i.e. Rs. 12 lakh per MW or 30% of the project cost whichever is lower is provided to the SPPDs towards development of internal infrastructures
• if the solar parks and Rs. 8 lakh per MW or 30% of the project cost whichever is lower is provided to the CTU or STU as the case may be towards development of external transmission system.