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Rajasthan Solar Power

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

Indian Project Developers Quote Lowest-ever Solar Bid Of US¢6.5/kWh

written by saurabh

Indian project developers have pushed solar power bids to record-lows in the latest solar power auction under the National Solar Mission.

An auction held by NTPC Limited for the implementation of 130 MW capacity in the western state of Rajasthan saw project developers bidding at Rs 4.35-4.36/kWh (US¢6.5/kWh). This the lowest-ever tariff bid by Indian companies and almost matches the lowest-ever tariff bid quoted in India.

Three companies, all controlled by Indian industrial conglomerates, secured the projects. Shapoorji Pallonji secured rights to develop 50 MW capacity at tariff of Rs 4.35/kWh. Mahindra Susten, part of the Mahindra & Mahindra Group, won a 60 MW project at Rs 4.35/kWh. A company part of the Adani Group secured 20 MW project at Rs 4.36/kWh.

The lowest-ever solar tariff bid seen in India till date stands at Rs 4.34/kWh (US¢6.5/kWh). The bid was placed by Indian arm of Finland-based Fortum Group. The company secured the 70 MW project as part of a 420 MW solar power park being developed by NTPC Limited in the western state of Rajasthan.

It is no coincidence that the lowest tariff by an Indian company has been received for a project located in Rajasthan. The state has ample solar radiation resource and cheap land which can be leased from the government for several years.

Another reason for the low bids is that the power shall be procured by NTPC Limited, a government-owned entity. Being an NTPC project has its benefits as financial institutions and banks tend to favour the developer in the lending process.

07/20/2016 0 comment

Renewable Energy

India’s NTPC Limited Approves 510 MW Solar Power Investment

written by saurabh

India’s largest power generation company has approved funding for two large-scale solar power projects demonstrating its intention to push forward with renewable energy development.

The board of NTPC Limited recently approved investment of Rs 3100 crore ($467 million) for the development of 260 MW solar power park in Rajasthan and 250 MW solar power park in Madhya Pradesh.

The company has already approved and started work on similar solar power parks in other states. The most recent update came from another solar power in the state of Rajasthan. NTPC allocated 420 MW capacity in units of 70 MW each. Fortum placed a bid of Rs 4.34/kWh (US¢6.5/kWh) which remains the lowest-ever tariff in India for solar power projects.

Solar power parks being developed by NTPC also includes the 500 MW project allocated to SunEdison in Andhra Pradesh. The project’s future is now at stake with the US-based developer facing financial troubles.

NTPC Limited plans to invest $10 billion to set up 10 GW of renewable energy capacity over the next 5 years. A large part of this capacity is expected in the form of solar power projects. The company has been asked by several state governments to set up large-scale solar parks and is reported to have 3 GW solar power capacity in its pipeline.

04/17/2016 0 comment