Indian Utility To Bundle Solar + Coal

Andhra Pradesh Utility Agrees To Buy Solar Power From 250 MW At Kadapa Solar Park If Bundled With Thermal Power To Cut Cost
01:21 AM (Beijing Time) - 24. November 2017

Key Takeaways

  • A utility in Andhra Pradesh is ready to procure solar power from 250 MW commissioned at Kadapa Solar Park by Solairedirect under a certain condition
  • It wants this power to be bundled with 125 MW thermal power to bring down the tariff from the original level of 3.15 INR ($0.0487) per kWh
  • It is not yet clear what the revised tariff will be at which it plans to buy the power

A state utility in Andhra Pradesh has agreed to buy solar power from 250 MW commissioned at the Kadapa Solar Park. The rate at which it will buy this power will be lower than the initial price, reported The Economic Times (ET).

In July 2017, there were reports that Andhra Pradesh State Power Distribution Company (APSPDCL) is not willing to sign a PPA with the National Thermal Power Corporation (NTPC) for a 250 MW PV project that is developed by French energy company Engie’s subsidiary Solairedirect. The solar developer won this capacity for a tariff of 3.15 INR ($0.0487) per kWh, but the rate was apparently not acceptable to the utility (see Andhra Pradesh Discom Refuses To Sign 250 MW PPA).

Now, the state wants to buy this solar power with the condition that it is bundled with 125 MW of thermal power so that the tariff is  lower than 3.15 INR per kWh, wrote ET.

The level of the revised tariff is not known. “A factor that may have changed Andhra Pradesh’s mind was that global solar module prices, which had strongly decreased have started inching up in the last few months, an official revealed. Solar prices at forthcoming auctions are unlikely to fall further,” stated ET.

India has seen its solar power tariffs come down to a record low of 2.44 INR ($0.034) per kWh (see ACME Wins 200 MW At 2.44 INR Record). With such steep decline in solar tariffs, several utilities are unwilling to buy power at prices from earlier tenders that does are higher than this level (see TANGEDCO Wants Retroactive Solar Tariff Cuts).  


Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani