Which is better, a solar park where 100s of MW of capacity is located at one site or a distributed model where projects are set up based on the local demand-supply situation?

To experiment with the second option, the Telangana Government has been working on the distributed development of solar parks. The State has encouraged project proponents who have won projects through the competitive bidding process to develop and set up projects based on load on the substation and demand-supply mismatch.

Distributed model parks, which would be set up in locations where there is shortage of power can use the existing grid as they will be developed close to them, thereby saving on costs, says D Prabhakar Rao, Chairman and MD, TS Transco.

He told BusinessLine that the model is working well. “It is being being keenly watched by other States. The developers are offered locations to set up solar parks based on demand-supply situation.” The State is specifically keen on using the concept for solar power projects in the agriculture sector. A pilot project is being initiated to provide 24x7 power to farmers under the model in Medak district. Unlike solar parks where a large chunk of land (about 5,000 acres) is required to set up a 1,000 MW facility, the distributed model requires smaller land parcels. And Telangana being a new State wishes to encourage setting up many such solar plants located closer to local substations and transformers. The logic is that tthis would mean lower transmission and distribution losses due to locations close to the end supply and local consumption.

The State has thus far entered into power purchase agreements for total installed capacity of 3,800 MW and plans to develop 5,000 MW by 2019. It had only one MW in June 2014 and has now increased capacity to 1,700 MW. In the next 3-4 months this is expected to go up by 800 MW.

One of the major challenges for the State was to ensure nine hours power supply to the farm sector. Due to shortage, the power was supplied when demand was less and again late in the night. However, now power could be supplied from solar plants in the day time and from other sources in the night during demand drop.

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