Indian renewable energy company Avaada Power has committed to invest INR100bn ($1.55bn) for the development of 1.6GW solar power projects in the state of Uttar Pradesh (UP).

The company has signed a memorandum of understanding (MoU) with the UP government at the Investors Summit 2018, held in the state capital of Lucknow.

These solar projects will be developed across the districts of Mirzapur, Badaun, Gorakhpur and Bundelkhand and could generate nearly 3,700 jobs during the construction phase, the company stated.

Detailed plans about the number of projects and each of the project’s capacities are yet to be released by Avaada.

The state has a target of achieving 2GW of solar power and the commitment from Avaada is expected to add to the state’s target significantly. Presently, the state has an installed capacity of about 569MW in solar. It is also expected that the state has a potential to install up to 22.8GW, ETEnergyworld reported.

The solar projects are estimated to reduce more than 25,00,000 tonnes of carbon emissions annually. The clean energy generated from these projects will be enough to power 7.44 million homes across the state.

Avaada Group chairman Vineet Mittal said: “We are geared up to support UP's mission of utilising the potential of the sun to power its development needs sustainably. We are working aggressively to help catapult the state on the clean energy trajectory.

"This MoU will enable UP to be the front runner in achieving Prime Minister's vision of 100 GW of solar energy by 2022."

The country has set a target of a total renewable energy capacity of 175GW by 2022. The target includes 100GW from utility and rooftop solar projects, 60GW from wind, 10GW from biomass and 5GW from small hydro electric projects.

In 2017, India's solar installations reached 20GW on a cumulative basis, reaching the target set by the National Solar Mission four years ahead the schedule.

According to a research report published by Mercom Capital, the utility-scale cumulative installations in the country stood at nearly 18.4GW in 2017, with rooftop solar installations at 1.6GW. 

Image: Avaada Power’s solar projects could create 3700 jobs in India. Photo: Courtesy of RK008/FreeDigitalPhotos.net.