A renewable energy independent power producer, Orange Renewable, has signed a power purchase agreement to sell power from a large solar power project in Maharashtra.
Subsidiary of Singapore-based AT Holdings, Orange Renewable, has signed a power purchase agreement with the Solar Energy Corporation of India (SECI) for 100 MW solar PV project. The company had won rights to develop the project during a competitive auction held earlier this year.
The auction was organised by SECI for setting up 450 MW solar power park in the state of Maharashtra. Projects were offered under the viability gap funding mode with fixed tariff of Rs 4.43/kWh (US¢6.6/kWh). Developers were supposed to bid for the lowest capital cost support needed to set up the projects.
Interestingly, one of the bidders placed a bid of no capital cost support and even offered to develop a 30 MW project at lower tariff of Rs 4.41/kWh. Orange Renewable placed a bid of financial support of US$68,816 per MW to implement 100 MW project at the fixed tariff of Rs 4.43/kWh. Another major renewable energy IPP Welspun Renewables Energy also secured 100 MW with capital cost support of US$80,410 per MW.
Orange Renewable winning the bid for a solar power project is continuation of a recent trend in India which has seen wind energy projects developers entering the solar power market. Solar power enjoys comparatively stronger regulatory support. And a number of important financial incentives for wind energy sector are set to expire at the end of this financial year.