Project developers are flocking to Telangana to take advantage of the power-deficient scenario prevalent in these states.
Following the separation of erstwhile Andhra Pradesh, the power generation assets were distributed between the present-day Andhra Pradesh and the newly created state of Telangana. This somehow worsened the power supply situation in the two states. Both are now competing to secure any power supply source available in the market.
The renewable energy project developers are looking to take advantage of this situation. Greenko has directly approached the Telangana government with an intent to develop 800 MW of renewable energy capacity in the state.
The company took the proactive measure even as the Telangana government is planning to purchase high-cost electricity from the open market. The state government has issued tenders to implement solar power capacity and has also signed agreements with the central government and public sector companies to set up large-scale solar power projects.
As the auction for renewable energy projects (especially solar power) gets ever more competitive, some project developers are approaching the state governments directly to set up projects and potentially secure power purchase agreements at the base tariffs determined by state-level regulatory bodies.
SunEdison recently successfully undertook this approach in Rajasthan. The company signed a memorandum of understanding with the Rajasthan government to install 5 GW solar power capacity over the next five years.
Greenko is planning to aggressively expand its renewable energy base in India. On 30 September 2014, the company had an operational capacity of 715 MW. It plans to increase the operational capacity to 1 GW by the end of this year. The company has a cumulative capacity of 2.5 GW of power generation capacity in its pipeline.
Image Credit: Greenko Group