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NTPC Ltd., India's largest power producer has significantly expanded its solar energy activities with the signing of another new agreement to construct a large-scale solar power plant in the state of Uttar Pradesh.
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NTPC (formerly the National Thermal Power Corporation) Ltd's investment of 3000 crore ($500 million) in solar infrastructure demonstrates its new focus on hydro and solar power.
This aligns with plans by the Indian government to develop 25 'ultra-mega power projects' (UMPP) totalling 22 GW. Each project will have a minimum capacity of 500 MW, with the facility in Jammu and Kashmir being the largest at 7.5 GW.
While at the moment only Andhra Pradesh, Telangana and Madhya Pradesh have proposed UMPPs, it is likely that NTPC Ltd will sign agreements with other Indian states to more-fully develop India's solar energy potential.
The facility that will be constructed in Uttar Pradesh, an agricultural region with a very large population, will be within one of the most power-hungry of India's states. The Indian government has decided to decentralise the project over four sites in order to navigate land issues.
While Uttar Pradesh has been traditionally energy poor, due largely to a lack of coal and political reasons, solar energy represents a valuable alternative to more traditional means of power generation.