Subsidiary of a leading private power generation company in India has secured a major win in the latest auction under the National Solar Mission.
Adani Green Energy, part of the Adani Group, has won rights to develop 100 MW solar power project under the viability gap funding auction organised by Solar Energy Corporation of India (SECI). Adani Green Energy participated in the auction through a special purpose vehicle – Parampujya Solar Energy.
The auction required perspective project developers to bid for the lowest capital cost support needed for setting up each MW of solar photovoltaic power project. Parampujya Solar Energy quoted a bid of Rs 59 lakhs (US$88,350) per MW. Project developers can ask for a maximum of Rs 1 crore (US$150,000) per MW in capital cost support.
The developer shall sign a long-term agreement with SECI with a fixed tariff of Rs 4.43/kWh (US¢6.60/kWh). SECI, in turn, will sell the power to utilities across the country at a tariff of Rs 4.50/kWh (US¢6.70/kWh).
According to media reports, only two other companies participated in the auction, both were Indian companies. Azure Power, one of the leading solar IPPs in the country quoted a bid of Rs 84 lakhs (US$125,800) per MW while Spectrum Coal and Power, a thermal IPP, quoted a bid of Rs 89 lakhs (US$133,300) per MW.
Auctions under viability gap funding scheme has seen participation largely from Indian companies only. The parameters of these auctions are stricter than other auctions under the state solar power policies. Auctions are only held for capital cost support while tariff is fixed at Rs 4.43/kWh (US¢6.60/kWh) for the entire tenure of the power purchase agreement.