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Fortum

Finnish Company Fortum Commissions One Of India’s Cheapest Solar Power Projects

written by saurabh

Finland-based Fortum Corporation recently announced that it commissioned its largest solar power project. The project, located in the Indian state of Rajasthan, is also among the cheapest solar power projects in the country.

In a recently issued press release Fortum declared that it commissioned a 70 megawatt solar PV project under India’s National Solar Mission. The project is located in the western state of Rajasthan – one of the leaders in solar power development in the country. The project is part of the Badhla solar power park owned by NTPC Limited, the largest power generation company in India.

Fortum had secured this project through competitive auction held in January 2016. The tariff of Rs 4.34/kWh (6.7¢/kWh) quoted by the company was the lowest in India at the that time and only 8% higher than the global record low bid at that time.

With the operationalisation of this project, Fortum now owns 85 megawatts of solar power capacity in India. The company is also working on a 100 megawatts project in the southern state of Karnataka which is expected to be commissioned in the first half of this year. Power generated from this project will be sold at Rs 4.79/kWh (7.4¢/kWh) for a period of 25 years.

Last year, the company also announced plans to invest €400 million in India’s solar power market to develop more projects.

04/04/2017 0 comment

Renewable Energy

Competitive Solar Auction In India Keeps Tariffs Under US¢7.2/kWh

written by saurabh

Indian and international project developers continue to fight it out in one of the fastest growing solar power markets in the world.

The recent solar power auction in the Indian state of Karnataka saw one of the most competitive bidding in recent times. The auction allocated 500 MW capacity of the planned 2 GW solar power park part of the ambitious ultra mega solar power project scheme announced by the Indian government.

A total of 6 developers managed to win rights to develop the first phase of the solar power park. The winning bids were all within a range less than one US cent. The winning bids were between Rs 4.78/kWh to Rs 4.80/kWh (US¢7.2/kWh).

Interestingly, 5 of the 6 project developers were Indian companies while many major foreign developers, including SunEdison and Canadian Solar, failed to the cut.

Among the successful bidders, Adani Enterprises, Fortum Group (from Finland), ACME Solar, and Tata Power secured 100 MW project each while RattanIndia Power and ReNew Power Ventures won 50 MW project each.

Such a positive response to one of the first auctions under the ultra mega solar power scheme is very encouraging for the Indian government. The scheme is one of the mainstays of the Indian National Solar Mission which aims for 100 GW operational solar power capacity by March 2022.

Continued and active participation by the Indian developers is also a testament to the fact that it is not just the foreign developers that are propelling the low-cost solar power revolution in India.

04/26/2016 0 comment

Renewable Energy

Foreign Developers Fail To Make The Cut In India 500 MW Solar Power Auction

written by saurabh

Six project developers wrapped up 500 MW solar power tender with difference in their tariff bids of less than one US cent.

Interestingly, only a single foreign project developer could make the cut. Foreign project developers, like SkyPower Global, SunEdison and Fortum, have so far led the record-breaking solar power tariffs in India.

SkyPower Global is not believed to have participated in the auction while SunEdison could not submit a winning bid. Fortum Group managed to secure rights to develop 100 MW project at Rs 4.79/kWh (US¢7.2/kWh). Canadian Solar also participated in the bidding process but failed to quote a low enough tariff bid. The projects shall be part of the 2 GW ultra mega solar power project coming up in the southern state of Karnataka.

Apart from Fortum Group, all other winning developers are based in India. RattanIndia Power and ReNew Power Ventures won bids for 50 MW capacity each. Adani Enterprises, ACME and Tata Power secured the rights to develop 100 MW capacity each.

Participation by SunEdison should come as nothing short of a surprise. The company secured rights to develop a 500 MW project in Andhra Pradesh last year at Rs 4.63/kWh (US¢6.9/kWh) but is believed to be having problems implementing the project due to its poor financial condition.

04/20/2016 0 comment