A Major Boost for Solar Projects: Budget Allocation for Solar Energy Infrastructure in Uttarakhand

Uttarakhand is set to overcome significant hurdles in its solar energy projects as the state government allocates a dedicated budget for infrastructure development. The Uttarakhand Power Corporation Limited (UPCL) had proposed the need for infrastructure support, and a committee chaired by the Secretary of Energy will now assess this proposal. The Uttarakhand Renewable Energy Development Agency (UREDA) will provide the required budget based on UPCL’s recommendations.

Overcoming Challenges in Solar Energy Projects

With the increasing demand for solar energy projects across various districts, the lack of adequate infrastructure has been a significant challenge. This issue has particularly affected the implementation of the Chief Minister’s Solar Self-Employment Scheme. The government has amended the related notification to address these challenges, ensuring that the UPCL’s budgetary constraints no longer hinder progress.

Previous Rules and the Need for Change

Previously, the allocation of solar power plants was limited by aerial distance requirements, with 300 meters in hilly areas and 100 meters in plains. These provisions, guided by the Uttarakhand Electricity Regulatory Commission’s standards, led to a situation where the UPCL’s infrastructure was insufficient to support the growing number of solar projects.

New Amendments and Budget Allocation

The new amendments retain the aerial distance rule but remove budgetary constraints as a roadblock for infrastructure development. UPCL will prepare a proposal and submit it to UREDA, which will then be reviewed by a committee comprising senior officials, including the Additional Secretary of Finance, Additional Secretary of Energy, UPCL’s MD, and UREDA’s Chief Project Officer. Upon the committee’s approval, UREDA will allocate funds from the state plan budget specifically for infrastructure development under the Chief Minister’s Solar Self-Employment Scheme. This fund will cover essential infrastructure needs like substations, transmission lines, and transformers. UPCL will be required to provide a utilization certificate to UREDA, ensuring transparency and accountability.

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Stalled Solar Projects in Uttarkashi

In Uttarkashi, several solar projects under the Chief Minister’s Solar Self-Employment Scheme have been stalled due to grid limitations. The UPCL has withheld the Technical Feasibility Reports (TFR) for applications linked to six substations because of a full grid, leading UREDA to halt project allocations.

To address this, Uttarkashi’s District Magistrate, Mehraban Singh Bisht, has requested a budget of ₹59 crore from the Secretary of Energy to upgrade these substations. The proposal includes capacity enhancement for substations in Bhattwadi, Dhanari Gaad, Chinyalisaur, and Gangori, along with the creation of new feeders and the upgradation of existing ones. The budget will also cover the enhancement of 33 kV and 11 kV conductors.

Conclusion

With the allocation of this budget, the infrastructure constraints that have been hindering solar energy projects in Uttarakhand are expected to be resolved. This will pave the way for the rapid implementation of solar projects, benefiting the youth under the Chief Minister’s Solar Self-Employment Scheme. The state government’s proactive approach in amending the rules and allocating funds signifies a major step forward in Uttarakhand’s renewable energy ambitions.

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Trishla Tyagi
Trishla Tyagi

Trishla is a news writer and social media aficionado. She has substantial experience in covering updates, events, and news related to the different space, along with rapidly expanding blockchain and financial technology markets. Her experience in the cryptocurrency market has led her to become a crypto hodler herself.