The unprecedented success of Rewa and Bhadla solar power auctions has promoted several Indian states to undertake similar auctions.
Now, Uttar Pradesh is planning to acquire 750 megawatts solar power from a project located within the Bhadla solar power park in neighbouring state of Rajasthan.
Officials of the Rajasthan Renewable Energy Corporation, the Solar Energy Corporation of India and the Ministry of New and Renewable Energy will soon chalk out the terms of auction.
The power generated at Bhadla solar power park will be transmitted to power utilities in Uttar Pradesh at no additional charges as the MNRE has exempted solar and wind energy projects from inter-state transmission and wheeling charges.
This off-site model of solar power procurement has been in practice for a while now. The state of Haryana had auctioned projects that would be installed in Rajasthan. Better solar radiation, availability of barren land and existing transmission infrastructure makes Rajasthan an apt location to set up large-scale solar power projects.
Delhi Metro Rail Corporation signed agreement to procure electricity generated at Rewa solar power park in Madhya, nearly 800 kilometres away. A Delhi-based utility also signed an agreement with SunEdison to procure electricity from a 180 megawatts solar power project that was supposed to come up in Madhya Pradesh.
The Indian government’s project of Green Energy Corridors promotes such off-site project development. It encourages states deficient in renewable energy resources to procure electricity through dedicated transmission lines.