SunEdison wins NTPC solar bid at ` 4.6/unit

NEW DELHI: US-based renewable energy major SunEdison on Wednesday won a bid to supply the cheapest solar power yet in India. In auctions conducted by government-owned NTPC, SunEdison quoted ` 4.63 per unit, the lowest solar tariff yet, for setting up a 500-megawatt (MW) facility in Andhra Pradesh.

A top government official confirmed to HT that SunEdison had emerged as the lowest bidder. Several renewable energy majors and probable investors, including a ReNew Power, Hero Futures Energy, Fotowatio Renewable Ventures and a joint venture between Softbank, Bharti Enterprises and Foxconn were in the race to win the contract.

“Unlike Madhya Pradesh (MP), 10-15 companies bid close to our price. The government has done a phenomenal job of eliminating land development, interconnection and discom risks. They have appointed the creditworthy NTPC as the counterparty,” said Pashupathy Gopalan, president, Sunedison Asia-Pacific.

The government official cited earlier said that the new tariff benchmark would mean the government might have to rethink the terms of its upcoming 5,000MW auction, under which it will provide viability gap funding – or subsidy – of around ` 0.5 per unit. “Earlier we were proposing ` 5 (per unit) to the cabinet, now with the new benchmark, it will come down to ` 4.13,” the official said. This project is on top of a 2,000-MW project that has already been cleared. Next year the government plans to bid out projects to the tune of 12,000 MW.

In July, solar auctions carried out by MP government had discovered hitherto lowest tariff of ` 5.05 per unit.

Solar power tariffs have steadily been falling in the last few years from more than ` 18 per unit just a few years back to under ` 5 per unit now.