25 Oct 2019

Scheme for Development of Solar Parks & Ultra Mega Solar Power Projects2 min read

Source: PIB & Solar Energy Corporation of India Limited


The scheme aims to provide a huge impetus to solar energy generation by acting as a flagship demonstration facility to encourage project developers and investors, prompting additional projects of similar nature, triggering economies of scale for cost-reductions, technical improvements and achieving large scale reductions in GHG emissions

Implementing agency 

  • The solar parks will be developed in collaboration with the State Governments & their agencies. 
  • The MNRE Nodal Agency would be Solar Energy Corporation of India (SECI) on behalf of the Government of India (GOI). 
  • SECI will handle funds to be made available under the scheme on behalf of GOI. SECI will administer the scheme under the direction from MNRE.

MNRE support 

  • The State Government will first nominate the implementing agency for the solar park and also identify the land for the proposed solar park.
  • It will then send a proposal to MNRE for approval along with (or later) the name of the implementing agency

Ultra Mega Solar Power Projects 

  • Ultra Mega Solar Power project is a single power project with a capacity of over 500 MW. These projects may be set up in some of these Solar Parks. 
  • The projects may be bid out after developing the park or simultaneously with park developments.
  • In some cases, the full park may be one Ultra Mega Project. In such cases the JV set up to develop the Ultra Mega Solar Power Project may become the implementing agency also.

Solar park

  • Solar Park is a concentrated zone of development of solar power generation projects
  • As part of Solar park development, land required for the development of Solar Power Projects with cumulative capacity generally 500 MW and above will be identified and acquired and various infrastructure like transmission system, water, road connectivity and communication network, etc. will be developed. 
  • The parks will be characterized by well developed proper infra-structure where the risk & gestation period of the projects will be minimized. 

Hybrid Projects 

  • Some other forms of RE like wind, biomass, etc. may also be allowed to come up in the park wherever feasible. 
  • Projects with CSP technology may in these parks have up to 15% of auxiliary fuel of gas or biomass. 

State Government’s obligation to purchase power:

  • The State Government in which the solar park is developed must agree to buy at least 20% of the power produced in the park through its Discom. 
  • The States which agree to buy a higher percentage of power will be given preference. 

Enhancement of Capacity from 20000 MW to 40000 MW 

  • In 2017 the Cabinet Committee on Economic Affairs, chaired by the Prime Minister approved the enhancement of capacity from 20,000 MW to 40,000 MW of the Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects.
  • The enhanced capacity would ensure setting up of at least 50 solar parks each with a capacity of 500 MW and above in various parts of the country. 
  • Smaller parks in Himalayan and other hilly States where contiguous land may be difficult to acquire in view of the difficult terrain will also be considered under the scheme.

Leave a Reply

Pin It on Pinterest

Share This