INDIA'S RENEWABLE INVESTMENT $2 BLN

FT - In a renewed push to cut dependence on fossil fuels, the Indian government wants state-run companies to build massive clean energy parks at a cost of around $2 billion each.

The proposed ultra mega renewable energy power parks (UMREPP) of 2,000 megawatts each will help developers achieve economies of scale and further bring down solar and wind power tariffs, Livemint reported.

Setting up such parks will bolster India's image as a clean energy champion at a time the world is grappling with concerns related to climate change. Clean energy projects now account for more than a fifth of India's installed power generation capacity.

These green energy parks will be set up under the existing Solar Park scheme, which provides the building blocks—land and grid connectivity—and will be implemented by a special purpose vehicle (SPV).

"Various public sector undertakings have been urged to set up ultra mega renewable energy plants in major states in collaboration with state governments through SPV mechanism for these parks," said Anand Kumar, secretary in the ministry of new and renewable energy, adding that the SPVs can either purchase land or take it on lease from state governments or private parties.

To get states on board and facilitate the requisite clearances, state governments will be paid $0.0002 per unit of electricity generated from the projects over their lifetime.

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