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Uttar Pradesh tenders 95 MW of solar under PM KUSUM scheme

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Under a new tariff-based competitive bidding system, Indian farmers can set up solar plants ranging in size from 500 kW to 2 MW on uncultivable farmland, so they can sell the electricity to state distribution companies. They can also lease their land for PV arrays. The fixed ceiling tariff is INR 3.10 ($0.04)/kWh, with bidding scheduled to close on June 15.

The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has opened bidding for 95 MW of grid-connected solar capacity under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) scheme. 

The plants will be set up in sizes of 500 kW, 1 MW, 1.5 MW, and 2 MW (AC) on a build-own-operate basis. Developers will build them on barren, uncultivable land, as well as marshland, within a 5 km radius from the 33/11 kV sub-stations of state electricity distribution companies (discoms).

The developer selection will be made through tariff-based competitive bidding. The ceiling tariff has been set at at INR 3.10/kWh. Individual farmers, groups of farmers, and project developers are eligible to bid. The discoms will sign 25-year power purchase agreements with the winning developers.