Chinese solar panel manufacturer Canadian Solar has announced that it signed a power purchase agreement in India for the sale of electricity generated from a large-scale project.
Canadian Solar secured rights to develop an 80 megawatt solar power project in a competitive auction organised by the Solar Energy Corporation of India. The project will come up in the western state of Maharashtra.
The project was part of an auction that allocated a total of 450 megawatt capacity through viability gap funding mode.
In viability gap funding the government offers financial support to bidders for setting up projects. Canadian Solar is eligible to Rs 4.43/kWh tariff for a period of 25 years. The company will also receive $30,379 per megawatt support for the project.
Shawn Qu, chairman and chief executive of Canadian Solar, said: “We are pleased to secure our first 80MW(ac) of solar power projects with SECI, a bankable and reputable off-taker operating under the Government of India. This investment adds to our India pipeline that stands at 110MW(ac) and represents a significant milestone for Canadian Solar in one of world’s fastest growing renewables markets.”
Apart from developing its power projects Canadian Solar also owns stake in two solar power projects of 15 megawatt capacity each in Telangana. The projects are being developed by Suzlon Energy which also secured the projects in competitive auction.