India Auctions 450 MW Solar Capacity Under Capital Cost Support Scheme

Solar Energy Corporation of India has auctioned another batch of projects under the Viability Gap Funding scheme.

A total of 450 MW solar power capacity was auctioned by the Solar Energy Corporation of India (SECI) in the western state of Maharashtra. The auction took placed under the Viability Gap Fund (VGF) program wherein bidders quote minimum capital cost support they would need to set up the power projects.

In the current auction, tariff was fixed at Rs 4.43/kWh (US¢6.6/kWh) with power purchase agreement with SECI for a period of 25 years. A total of seven companies were allocated capacity between 10 MW and 130 MW.

The lowest bid was placed by a company names Vijay Printing Press which secured a 10 MW project at a tariff bid of Rs 4.42/kWh and did not sought any financial support. All other winners secured projects at the fixed tariff of Rs 4.43/kWh and sought capital cost support between US$28,503/MW and US$29,988/MW.

The largest capacity, of 130 MW, was secured by a company named Solar Edge Power and Energy at US$28,503/MW. Interestingly, two foreign companies also secured large capacities. UK-based Lightsource won rights to develop 50 MW capacity while Canadian Solar will develop 80 MW capacity.

Lightsource had announced last year that it will invest in India’s solar power market following an agreement signed by the company with the Indian government. The company had announced plans to set up 3 GW of solar power capacity at a total investment of $3 billion.

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