Markets

KREDL Awards 250 MW PV In Separate Auctions

Several big SECI solar power tenders the agency announced in the recent past are yet to be awarded. At such a time, KREDL announcing winners of comparatively smaller tenders should help boost the morale of the Indian solar sector. (Photo Credit: SECI)

Anu Bhambhani
  • KREDL has awarded 3 solar PV projects with 50 MW capacity each for Pavagada Solar Park to Giriraj Renewables for a winning tariff of INR 2.92 ($0.0397) per kWh
  • Consultancy Mercom says authorities plan to increase cumulative capacity of Pavagada Solar Park by another 50 MW or so
  • Another KREDL auction had it contracting Asian Fab Tec for 5 projects of 20 MW capacity each in 5 separate districts; the company won all of this 100 MW for INR 2.89 ($0.039) per kWh
  • Azure Power has announced signing letter of award from the NTPC for 300 MW it won in August 2018

Of late, any news related to solar power capacity auctioned in India is a rarity as most big tenders issued in the recent past are yet to see the light of the day. Sensing disinterest from developers, tender issuing agencies like Solar Energy Corporation of India (SECI), have been introducing amendments and deadline extensions for a number of tenders, including the 1.2 GW interstate transmission system (ISTS) connected wind and solar power tender and the 10 GW ISTS connected PV projects linked to 3 GW manufacturing capacity, among others.

So this auction news from Karnataka shows some signs of life in the Indian PV sector. The Karnataka Renewable Energy Development Limited (KREDL) has awarded a total of 250 MW solar PV capacity to two winning bidders in two separate auctions. Giriraj Renewables won the contract to develop 150 MW of grid connected PV projects in Pavagada Solar Park, Tumkur, Karnataka.

KREDL tendered 150 MW in July 2018 to be set up in three blocks of 50 MW each. Giriraj Renewables won the entire capacity for the winning tariff of INR 2.92 ($0.0397) per kWh.

In February 2018, NTPC achieved grid-connection for 600 MW capacity at Pavagada Solar Park, which on completion will have 2 GW cumulative capacity (see 600 MW PV Capacity Online At Pavagada Solar Park). Speaking to Mercom India Research, a KREDL official said only 200 MW needs to be auctioned by SECI here. The agency plans to expand the park's capacity by another 50 MW or so, and may develop it in pockets of 5 MW each.

Asian Fab Tec secures 100 MW

Another 200 MW tender by KREDL launched in August 2018, had the agency awarding only 100 MW, all of which was won by Asian Fab Tec (see KREDL Tender For 200 MW In Karnataka). The latter will develop 20 MW capacity in five districts identified as Lakshmeshwar, Savanuru, Haveri, Kushtago, and Hanur. It proposed same tariff, INR 2.89 ($0.039) per kWh, to win all these projects.

All of this 250 MW capacity will sell clean power to Bangalore Electricity Supply Company (BESCOM) for a period of 25 years.

Azure signs LOA for 300 MW

In a related development, Indian independent solar power producer Azure Power said signed a letter of award (LOA) for a 300 MW ISTS grid connected PV project. It won the capacity in an auction conducted by the National Thermal Power Corporation Limited (NTPC) offering a tariff of INR 2.59 ($0.036) per kWh for a period of 25 years (see NTPC 2 GW Tender Bids All Under 3.00 INR/kWh). It is at liberty to set up the plant anywhere in the country with commercial operations to begin in early 2021.