In a significant step towards promoting clean energy, Uttar Pradesh has issued letters of agreement (LoAs) to over 100 developers for establishing solar power plants with a combined capacity of more than 1,527 MW aimed at supplying solar power to agriculture feeders. These solar power plants will be set up under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyaan (PM KUSUM) C-2 scheme.
The initiative targets solarisation of approximately 5,000 agriculture feeders, ensuring eight hours of uninterrupted daytime power supply to tubewells/pump-sets for irrigation. The UP Power Corporation Ltd (UPPCL) has already segregated around 80% of the agriculture feeders from the domestic ones for assured and reliable power supply for fixed eight hours for irrigation.
“The UP government has fixed the target of generating 2,000 MW of solar power under KUSUM C-2 by 2027 and against it we have already issued LoAs for more than 1,51,527.2 MW of solar power to over 100 developers who will set up solar plants adjacent to the identified sub-stations catering to separate agriculture feeders,” UPNEDA secretary and chief project officer, Pankaj Singh said.
The UPPCL will procure the solar power generated under the scheme for 25 years for ₹2.99 per unit, ensuring stable revenue for developers and long-term income for farmers.
“The scheme provides an opportunity for farmers and landowners to lease barren or unutilised land to solar power developers under pre-fixed agreements. UPNEDA has developed a dedicated online portal where interested farmers can register their land free of cost for leasing. Solar plants can be set up within a 5-10 km radius of identified substations, requiring around four acres per megawatt of capacity,” project officer Rakesh Agrawal said.
{{/usCountry}}“The scheme provides an opportunity for farmers and landowners to lease barren or unutilised land to solar power developers under pre-fixed agreements. UPNEDA has developed a dedicated online portal where interested farmers can register their land free of cost for leasing. Solar plants can be set up within a 5-10 km radius of identified substations, requiring around four acres per megawatt of capacity,” project officer Rakesh Agrawal said.
{{/usCountry}}The financial framework for developers includes a maximum central assistance of ₹1.05 lakh per MW and a state government grant of ₹50 lakh per MW as Viability Gap Funding, totaling ₹1.55 crore per MW.
Under the scheme, farmers/ group of farmers/ panchayat / cooperative / Farmer Producers Organization (FPO) and project developers can participate in the tender. Also, under the scheme, farmer’s land near the selected substations is to be leased by the selected Solar Power Project Developer for 27 years at a mutually agreed lease rent which will ensure a steady income for the farmers.
“For farmers, the scheme ensures a steady income through land lease payments and reliable daytime solar power for irrigation. Developers benefit from access to land, guaranteed power purchase agreements, and government incentives. DISCOMs gain access to affordable solar power, reducing power purchase costs and AT&C losses, ”Agrawal explained.
The developers selected through a competitive bidding process will have six months’ time to set up the plant at the identified sites from the date of the letter of agreement.