Azure Power India Pvt. and Solairedirect SA were among winners of licenses to build a total of 250 megawatts of solar power in India’s Punjab state.
The state sold 200 megawatts of contracts of 5 megawatts to 30 megawatts each to companies with experience in the industry, Balour Singh, director at the state Punjab Energy Development Agency, said today in a phone interview. It auctioned another 50 megawatts for projects of 1 megawatt to 4 megawatts, he said.
Eight companies won licenses for the larger projects. World Bank-backed Azure Power submitted the lowest bids, pledging to sell power from two sites of 15 megawatts each at 7,670 rupees ($133) a megawatt-hour and 7,970 rupees a megawatt-hour. Other winners in the category were France’s Solairedirect, Welspun Energy Ltd., Lanco Infratech Ltd. (LANCI) and Moser Baer India Ltd. (MBI)
The per unit tariff for these projects ranges from Rs. 7.20 to Rs. 8.71(kWh) for smaller capacity projects and Rs. 7.56 to Rs. 8.74(kWh) for the projects with larger capacities. The project developers will be facilitated by PEDA and given long-term power purchase agreements, for at least 25 years, by the Punjab State Power Corporation Limited.
Developers are free to choose any kind of photovoltaic technology, including crystalline silicon or thin-film panels, and won’t be subject to import curbs under the auction rules.
The winners have 13 months to complete the projects and will sell their power under 25-year power purchase agreements with the state utility, the regulations show.
Source : Bloomberg BusinessWeek