UP government opens applications for floating solar power projects under new policy

In a significant step towards boosting renewable energy, the Uttar Pradesh government has introduced detailed guidelines for allocating reservoirs and dams to developers for the establishment of floating solar power plants.

These guidelines have been issued under the Solar Energy Policy-2022 and will be implemented by the irrigation and water resources department. Developers can submit their applications online starting Tuesday, with April 30 set as the last date.

“In the first phase, we have invited online applications through a dedicated portal for the allotment of six of the 35 identified water bodies across the state. These six floating solar plants will produce 440 MW of green power,” said Narendra Singh, project officer at the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).

The reservoirs selected for the initial phase include Barusagar, Dukma, and Pathrai dams in Jhansi, the Gunta dam in Chitrakoot, and the Upper Khajuri dam in Mirzapur.

The state government issued a notification on March 14 identifying 35 water bodies as potential sites for floating solar projects. These locations will be allotted on a first-come, first-served basis. Each dam or reservoir is expected to support solar generation capacities ranging between 100 and 1000 MW. For smaller reservoirs, up to 200 MW of total capacity will be made fully available.

“We expect availability around 7,000 to 10,000 megawatt (MW) solar power once floating solar plants are set up at all the 35 sites identified,” a senior UPNEDA official added.

The policy aims to boost participation from public sector undertakings (PSUs) and joint ventures involving central and state government entities. While private developers are also eligible to apply through the designated portal, PSUs will be given preference in the case of a tie in merit.

“Financially, developers must demonstrate a minimum net worth of ₹1 crore per MW and submit a bank guarantee of ₹1 lakh per MW (valid for six months). Required documentation includes a pre-feasibility report, audit and financial records, a project implementation timeline, and at least three years of technical data,” said the official, quoting the guidelines.

To ensure timely project delivery, the guidelines include strict timelines for each phase. Letters of intent will be issued within 10 days of allotment, while developers must secure conditional contract approval within six months. Projects up to 1000 MW must be commissioned within 24 months, and those above that capacity within 30 months.

“Besides, developers must deposit 5% of the project cost as a performance bank guarantee. Delays beyond the stipulated timeline may attract penalties, though an extension of up to two months is permitted. The state will provide technical assistance for site selection, and a state-level committee will serve as the final decision-making authority,” the guidelines state.