Two wind energy companies in India have bagged solar projects worth more than a quarter of the total capacity on offer from the country’s largest auction to date.
Wind power producer Mytrah Energy Ltd. won a contract for 327 MW of solar capacity in the southern state of Telangana, which issued a tender in April 2015 for as much as 2,000 MW. Suzlon Energy Ltd., the nation’s biggest wind turbine maker, won its first ever solar contract with a successful bid for 210 MW in Telangana.
The efforts of India’s wind companies to diversify reflects Prime Minister Narendra Modi’s ambition to install 100 GW of solar power across India by 2022 at an estimated cost of $100 billion. Current solar capacity in the country is just over 4 GW.
"We are also working on integrated renewable energy solutions by combining wind and solar projects at a single location,” Suzlon Group’s Chairman Tulsi Tanti said in the statement.
Mytrah will sign power purchase agreements with the state power utility Southern Power Distribution Co. of Telangana Ltd. by the middle of next month.
“The tariff range for these projects, which will be built in a distributed way across the state, is from 5.59 rupees per kilowatt hour to 5.72 rupees per kilowatt hour,” Vikram Kailas, managing director at Mytrah Energy, said by phone.
Suzlon will build one project of 100 MW, one of 50 MW and four of 15 MW each across the state and will commission them in fiscal year ending in 2017, according to a statement from Suzlon.
“The tariffs range from 5.49 rupees a kilowatt hour to 5.59 rupees a kilowatt hour," said Rohit Modi, Suzlon’s chief executive officer for international operation and new business.
These solar projects will be built under six different entities known as special purpose vehicles. An existing subsidiary of Suzlon has acquired Amun Solarfarms Private Ltd., Avighna Solarfarms Private Ltd., Prathamesh Solarfarms Private Ltd., Rudra Solarfarms Private Ltd. and Vayudoot Solarfarms Private Ltd.
Suzlon will sign six power purchase agreements this month with the state utilities for a 25 year period, it added.
In April 2015, state utility Southern Power Distribution Company of Telangana Ltd invited bids for building 2,000 MW solar PV projects through a tariff-based, competitive bidding process with a distributed generation model to utilize substation capacities across the state.
Suzlon has a cumulative wind capacity of 15 GW across the world, of which about 9 GW is in India. Mytrah Energy had 543 MW of revenue-generating wind assets as of June 2015.
©2016 Bloomberg News