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Allotment of Waste and Degraded Land Parcels for PV Based Solar Parks in India: Effects on Power Generation Cost and Influence on Investment Decision-Making

Solar parks are well-defined areas developed in the high solar potential area, with the required infrastructure to minimize the potential threat for the developers. Land occupancy is a major concern for the solar park. The government policy mostly emphasizes the use of waste-degraded land for solar parks. In a competitive energy market, any attempt to use waste-degraded land parcels, without policy regulatory support, can bring large-scale disruptions in the quality and cost of power. The present study investigates the potential of using waste degraded land, with a focus on the impact on the cost of generation and decision making. The study investigates the possibility of including the cost of the externalities in the overall cost economics, through policy and regulatory interventions. Data related to India has been considered in the present analysis. Results show that there are less socio-economic and ecological impacts in using wastelands, compared to land, in urban-semi urban areas with an opportunity cost. Thus, the policy and regulatory interventions could promote wasteland utilization and lure favorable decision-making on investments.