Development of Solar Parks and Ultra Mega Solar Power Projects in India with a target of over 20 GW solar power by 2019 !

In order to provide  huge impetus to solar energy generation, the Ministry of New and Renewable Energy (MNRE) of India has announced the scheme for the implementation of at least 25 solar parks each with a capacity of 500 MW and above with a target of over 20,000 MW of solar power installed capacity in a span of 5 years i.e. by 2019 with an estimated Central Financial Assistance (CFA) of Rs.4050 crore for the development of the same.

Gujarat Solar Power Policy 2015

It may be noted that currently the total installed solar capacity in India stands roughly at 3000 MW till Dec 2014 with the State wise Installed Capacity of Solar Projects under various Schemes as mentioned below :

Statewise Installed solar projects in India till Dec 2014 - Source - MNRE

Statewise Installed solar projects in India till Dec 2014 – Source – MNRE

Therefore a target to install 20 GW of solar power by 2019 through the development of solar parks across India will surely provide some thrust to the solar sector in India which currently stands at the inflection point.

Brief Highlights of the scheme for the development of solar parks :

  • The solar parks will be developed in collaboration with the State Governments and their agencies. Solar Energy Corporation of India (SECI) would be MNRE’s Agency for handling this Scheme.
  • Capacity of solar park – 500 MW and above with an estimation of 5 Acres of Land per MW. Land for the setting up of the solar park will be identified by the State Government unless the implementing agency has its own land.
  • Solar Parks can be developed via four modes :
    1. The State designated nodal agency undertakes the development & management of the solar park. This agency could be a State Government Public Sector Undertaking (PSU) or a Special Purpose Vehicle (SPV) of the State Government.
    2. A Joint Venture Company is set up between State designated nodal agency and SECI for the development & management of solar park with 50% equity from SECI and 50% equity from the State Government Agency (State Government may also allow more than one agency provided total equity from State Government remains 50%).
    3. The State designates SECI as the nodal agency and SECI undertakes the development and management of solar park on behalf of State Government on mutually agreed terms.
    4. Private entrepreneurs promote solar parks without any equity participation from SECI, but may have equity participation from the State Government or its agencies.
  • Power Purchase Agreement (PPA) : The developers within the solar park shall enter into PPA’s with Central Utilities / state utilitites / Discoms / Third Parties / Captive Users willing to buy power from developer.
  • Central Financial Assistance (CFA) :
    • CFA @ Rs. 25 Lakh per park would be released by MNRE to SECI for Detailed Project Report (DPR) preparation of solar park & related surveys.
    • In addition CFA upto Rs. 20 Lakh per MW or 30% of project cost including grid connetivity (whichever is less) would be released by SECI at different milestones.
    • As SECI will manage the grant on behalf of MNRE -> SECI will be given fund handling fee of 1% of the grant released.
Solar panels are pictured at the Gujarat

View of India’s First – Charanka / Gujarat Solar Park with Wind Mills at the back


The good part is that the Private Developers can also be a part of this scheme. i.e. they can also set up their solar park and avail the benefits under the Central Financial Assistance (CFA) provision.

In addition to Solar PV projects, some other forms of renewable energy projects like wind energy projects, biomass etc. may also be allowed to come up in the park wherever feasible. Projects with CSP technology may in these parks have upto 15% of auxiliary fuel of gas or biomass.

Also manufacturing of solar products and components may also be allowed in the parks.

The official MNRE document related to scheme guidelines for develepment of solar parks can be assessed by CLICK HERE

Meanwhile till we meet next time with more updates on new solar energy policies & upcoming renewable projects in India…

Cheers !


Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia


About Urvish Dave

Urvish Dave is working as a Project Consultant in the Renewable Energy Arena with an expertise and keen focus on Solar Energy Sector viz. Rural Electrification, Off-Grid Solar Projects, Grid connected, Captive power plants, Renewable Energy Certificates (REC) Mechanism etc. for various Renewable Projects in India along with market intelligence pertaining to renewable energy sector. He holds the distinction of executing numerous Solar projects during the career path including EPC projects for Rural Electrification, Solar Grid Connected Projects, Off-Grid Projects etc. For Consultation and Turnkey Solutions in Renewable Energy Projects and energy efficient product's, visit or write him at
This entry was posted in and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s