Uttar Pradesh Mini-Grid Policy 2016

In 2016, Uttar Pradesh adopted a Mini-Grid Policy in order to speed up electrification process in rural areas of the province through a facilitation of renewable energy and mini-grids deployment.The mini-grids supported and regulated by the policy are to be installed in un-electrified areas (mostly rural) with no access to the national grid or in areas with low levels of electricity supply. The maximum size of the mini-grid project is 500 kW.The policy allows mini-grid developers to operate under two models.Under the first model the mini-grid developer is entitled to a 30% of a capital grant support in exchange for a state government/distribution company to indicate a location of the project, customer tariff and technical specifications of the project.Developers are obliged to deliver 8 hours of electricity supply for residential units and 6 hours for commercial and other production needs. The oversupply of the electricity can be sold to a customer chosen by a project owner.The electricity tariff is set and the developer will charge Rs. 60/month for load of 50 Watts, Rs. 120/month for 100 Watt t for 8 hours of daily electricity supply and for the load more than 100 Watt tariff will be on mutual consent between consumers and developer.The project developer must align project technical specifications according to Central Electricity Authority and UPPCL and Electrical safety & Security standards. Under the second model the project developer is free to choose a project location along with a level of a tariff charged to the customer however is not entitled for a capital grant support. However, projects operating under this model are entitled for the benefits of other Infrastructural 5 related support, incentives provided in Industrial Policy and exit process in case of conventional grid access.Mini-grid projects must be executed within certain timeframes:Projects based on solar PV panels must be completed within 6 months;Biomass/biogas based projects must be completed within 9 months;Wind and small energy power projects must be completed within one year.Six months extension may be granted for a delay due to actual/natural reasons at various levels.

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