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Kadapa Solar Power Park

Too Much Solar Power: Indian State Refuses Power From One Of Country’s Cheapest Solar Projects

written by saurabh

Solar power market in India seems to have expanded at such an astounding pace that now states are unwilling to accept more solar power market, such a case has propped up in the state of Andhra Pradesh.

According to media reports, Andhra Pradesh has refused to sign power purchase agreement for 250 megawatt solar power project part of the Kadapa solar power park stating that it has sufficient solar power coming up and does not required any more at the moment.

The project in question was secured by Solairedirect, a subsidiary of French energy major Engie. Solairedirect submitted a winning bid of Rs 3.15/kWh (4.9¢/kWh) in an auction organised by the Solar Energy Corporation of India for NTPC Limited which is developing the solar power park. NTPC Limited, the largest power generation company in India, was supposed to sign the power purchase agreement with Solairedirect and would have then supplied it to power utilities in Andhra Pradesh.

Andhra Pradesh had an installed solar power capacity of 1,294 megawatts at the end of March 2017 and is expected to increase it to 1,867 megawatts by March 2018. The state utilities thus claim that they have contracted enough solar power and do not require additional supply.

While the power utilities claim to have contracted enough solar power, the math does not add up.

The Andhra Pradesh Electricity Regulatory Commission (APERC) has proposed to increase the share of renewable energy in its electricity mix to 25.25% by March 2022. For non-solar renewable energy technologies, APERC has proposed a target of 12.50% by March 2022. The commission has also proposed to increase the solar power share from 4.75% in 2017-18 to 12.75% in 2021-22.

According to the Ministry of New & New Renewable Energy (MNRE) at 8% solar RPO target, Andhra Pradesh would require 9,834 megawatts operational capacity by March 2022. At 12.75% this capacity requirement would increase substantially.

Project developer Solairedirect is not expected to suffer from this setback as NTPC is free to approach power utilities of other states to sell this electricity. Several states across India are yet to move towards solar power on a large-scale.

07/31/2017 0 comment

Renewable Energy

French Energy Major Engie Plans At Least $1 Billion Solar Investment In India

written by saurabh

French energy company Engie has announced plans to invest ‘a minimum’ $1 billion in India as it looks to strengthen its share in the rapidly growing solar power market.

Chief executive officer at Engie Isabelle Kocher recently stated that the company is looking to secure at 400 megawatts solar power capacity every year with a planned investment of $1 billion over the next five years in India. Engie is present in India through a subsidiary – Solairedirect.

Solairedirect is among the leading foreign solar power project developers operating in India, and is also among the first movers, operating since the launch of the National Solar Mission in 2010. The company has been at the forefront of the recent sharp decline in solar tariff bids in India.

In January 2016, the company nearly tied for the lowest solar power tariff in India at that time. The company secured rights to develop 140 megawatts at the Bhadla solar power park in the state of Rajasthan; it placed a winning bid of Rs 4.35/kWh (6.7¢/kWh).

Solairedirect set another record recently in an auction for a solar power park being developed by India’s largest power generator NTPC Limited.

Solairedirect recently won rights to develop a 250-megawatt solar power project in the Kadapa solar power park being developed in the state of Andhra Pradesh. The company placed a winning bid of Rs 3.15/kWh (4.8¢/kWh), 4.5% lower than the previous record of Rs 3.30/kWh (5.1¢/kWh) levelized tariff set in February 2017.

Solairedirect currently owns only solar power projects in India but is looking to diversify into wind energy as well. Malcolm Wrigley, Engie’s India CEO stated that the company could participate in the upcoming wind energy auctions.

05/31/2017 0 comment

Renewable Energy

Solar Power Tariff Bids In India Crash 26% In Just 3 Months

written by saurabh

Participants in the Indian solar power market seem to have been embroiled in a mad race to the lowest possible tariff, the recent competitive auctions for large-scale projects has shown.

Since February this year four major solar power auctions have taken place in India with the lowest tariff bids falling by as much as 26% between the first and the latest auction. The race to lower tariff bids has been fuelled primarily by the crash in solar module prices, regulatory support from the government and, perhaps, the promise and hope of cheap debt finance.

In February, a total of 750 megawatt capacity was auctioned at first year tariff of Rs 2.97/kWh (4.6¢/kWh) which translates into levelised tariff of Rs 3.30/kWh (5.1¢/kWh) over a period of 25 years. The auction was historic in terms of the bids, mode of sale and dirt-cheap debt finance on offer from the International Finance Corporation. The winners in this auction were Acme Cleantech Solutions, Mahindra Renewables and Solenergi.

In April, India’s largest power generation company NTPC Limited offered 250 megawatts at the Kadapa solar power park in the state of Andhra Pradesh. The winner was Solairedirect, a subsidiary of French utility Engie. It secured the entire capacity at Rs 3.15/kWh (4.9¢/kWh) with the highest tariff bid going as high as Rs 4.68/kWh (7.2¢/kWh).

In May, two auctions were held back-to-back over a span of two days. The capacity on offer was 750 megawatts – 250 megawatts by Adani Enterprises and 500 megawatts by IL&FS – at the Bhadla solar power park in the state of Rajasthan.

At least 14 developers placed the final bids with ranged between Rs 2.62/kWh (4.1¢/kWh) and Rs 3.59/kWh (5.6¢/kWh). Only three of these 14 bids were higher than the previous lowest bid of Rs 3.15/kWh (4.9¢/kWh) discovered in the Kadapa solar park auction; and nine bids were lower than Rs 3.00/kWh (4.7¢/kWh).

Phelan Energy (50 megawatts), Avaada Energy (100 megawatts) and SB Cleantech (100 megawatts) were the winners in this auction.

The second auction in May for Bhadla solar power park witnessed increased competition among the project developers. Only one bid was greater than the winning bid of Kadapa solar power park; and five bids were lower than the winning bid of Bhadla solar power park two days back.

Acme Cleantech Solution (200 megawatts) and SB Cleantech (300 megawatts) were the winners in this auction at a tariff of Rs 2.44/kWh and Rs 2.45/kWh (3.8¢/kWh), respectively. The massive jump in competition within two days is evident from the fact that Acme Cleantech Solutions reduced its bid from a losing one of Rs 3.36/kWh (5.2¢/kWh) in the 250 megawatts Bhadla auction to just Rs 2.44/kWh (3.8¢/kWh) for the 500 megawatts auction – decline of 27.4% in a matter of two days.

SB Cleantech also reduced its tariff bid from Rs 2.63/kWh (4.1¢/kWh) to Rs 2.45/kWh (3.8¢/kWh), a drop of 6.8%. ReNew Power Ventures also dropped its bid from Rs 2.74/kWh (4.3¢/kWh) to Rs 2.47/kWh (3.8¢/kWh) between the two auctions but failed to score any win.

05/15/2017 0 comment

Renewable Energy

Solar Energy Corp Of India Issues 100 MW Solar Energy Storage Tender

written by saurabh

The Solar Energy Corporation of India has issued among the first tenders for solar power projects with storage capacity.

A tender for 100 MW storage capacity for a large solar power park has been issued by the Solar Energy Corporation of India (SECI). The storage will be part of the 1 GW Kadapa solar power park approved under the central government’s plan to setup around 25 GW of ultra mega solar power projects across the country.

Last month, media outlets had reported that SECI will auction an additional 200 MW storage capacity linked with large-scale solar power park in Karnataka. Theses auctions are part of an overall strategy to seamlessly integrate renewable energy projects into the existing power grid.

Earlier this year, Indian newspapers also reported that the Ministry of New & Renewable Energy was considering to launch a National Mission on Energy Storage. No details of the said mission are currently available, however.

International companies are already planning to bid for the impending tenders. Chinese battery maker BYD and Canada-based project developer SkyPower Global entered an agreement to bid for solar power projects in India soon after the news of 100 MW storage tender for Andhra Pradesh solar power park was reported.

08/27/2016 0 comment

Renewable Energy

Solar Energy Corp Of India Announces 650 MW Tender For Kadapa Solar Park

written by saurabh

The Solar Energy Corporation of India has announced yet another tender for one of the largest solar power parks in the country.

According to media reports, the Solar Energy Corporation of India recently issued a tender for allocation of 650 MW solar PV power capacity at a solar power park in the southern state of Andhra Pradesh. The auction is part of the 5 GW batch IV phase II of the National Solar Mission that aims to set up 5 GW of solar power capacity through viability gap funding.

The capacity shall be allocated at the Kadapa solar power park which will have an operational capacity of 1 GW once fully commissioned. The solar power park is one of four in the state approved by SECI. A total of 3 GW solar power parks will be commissioned in the state.

The capacity will be allocated through competitive auction of capital cost support required by the project developers. Of the total 650 MW capacity, developers will be free to choose between imported or domestic modules for 500 MW capacity while for the balance 150 MW capacity developers shall be mandated to use Indian-made modules.

SECI shall sign power purchase agreements with all developers at a fixed tariff of Rs 4.43/kWh for a period of 25 years. SECI will, in turn, sign power sale agreements with various state utilities to sell power at Rs 4.50/kWh.

Earlier this year, NTPC, the largest power generation company in India, floated 250 MW tender for the solar power park.

07/17/2016 0 comment