India’s Uttar Pradesh mulls additional 750 MW solar project at Bhadla

The runaway success of the Bhadla Phase-III and Phase-IV Solar Park in Rajasthan has prompted officials working for the government of Uttar Pradesh to propose the development of an additional 750 MW solar project in the state, reports Mercom Capital Group.

Recently concluded, the Bhadla Phase-III Solar Park auction saw tariffs reach a record low of INR 2.44/kWh ($0.037/kWh), which piqued the interest of Uttar Pradesh’s government, which has expressed an interest to develop and procure additional solar power at similar rates.

This week, Mercom Capital reports, officials at the Rajasthan Renewable Energy Corporation (RRECL) will issue a request for selection (RfS) for the 750 MW of solar capacity, while Ministry of New and Renewable Energy (MNRE) officials and representatives from the Solar Energy Corporation India (SECI) met in New Delhi to thrash out terms towards developing a reverse auction for the project by August 31.

The Transmission Utility (CTU) will undertake transmission of the solar power produced, and as such there will be no additional fees or charges levied. Mercom Capital stated that the Indian Ministry of Power has confirmed that no inter-state transmission charges or losses will be levied on solar projects that are commissioned by June 30, but extensions and concessions can be requested.

The expectation is that tariffs for the proposed solar project could likely come in around the same as those seen at Bhadla Phase-III given that the same features and benefits will be available. The recently amended Goods and Services Tax (GST), however, could push tariffs higher now that solar cells and modules are placed into the higher, 18% tax slab.