Uttar Pradesh to seal USD 376m of solar deals on Aug 8

Aug 8, 2013 - The government of India's state of Uttar Pradesh is expected to sign today INR 23 billion (USD 376m/EUR 282m) in contracts with eight solar project developers, the Times of India said yesterday.

For one, the state's New and Renewable Energy Development Authority (NEDA) will seal a memorandum of understanding (MOU) with India's National Hydroelectric Power Corp (BOM:533098), or NHPC, for a 100-MW solar park in Uttar Pradesh's Jalaun district. Under the terms of the agreement, NHPC will have to form a development joint venture within a three-month period. In return, NEDA will secure the site and offer equity financing.

The Uttar Pradesh government will also strike pre-purchase agreements (PPAs) on August 8 with seven power firms for 130 MW of solar capacity. The contract will be signed for a 12-year period, with bidding rates ranging between INR 8.01 and INR 9.33 per kWh. The state will cover the costs of building transmission infrastructure, while the the remaining project costs will be funded by the power producers.

The solar deals will be awarded as part of Uttar Pradesh's solar power policy scheme for 2013. They are also in line with the state government's plan to attract INR 230 billion in solar investment during the following 12-18 months.

(INR 10 = USD 0.163./EUR 0.122)

Choose your newsletter by Renewables Now. Join for free!