One of the leading solar power project developers in India, Azure Power, has secured rights to develop large-scale projects in one of the state-level auctions.
Azure Power secured a third of the 500 MW capacity offered by the Punjab Energy Development Agency (PEDA) in the third auction under the state solar power policy. The company announced that it secured rights to develop 150 MW solar PV power capacity under a bid of Rs 5.63/kWh (US¢8.66/kWh).
A total of 18 companies placed bids with cumulative capacity of 1,650 MW. The lowest bid was placed at Rs 5.09/kWh (US7.83/kWh). The state agency has not announced the complete list of winner of the auction.
Bids in the latest auction were in-line with the last auction that took place in September this year. The state agency had offered 500 MW in that auction as well with prospective developers submitting bids between Rs 5.09/kWh (US¢7.83/kWh) and Rs 5.98/kWh (US¢9.20/kWh). The lowest bid in the phase 3 auction is at a premium to the lowest-ever tariff of Rs 4.63/kWh (US¢7.12/kWh). SunEdison had secured 500 MW capacity at this tariff recently.
One of the possible reasons for the slow decline in the tariff bids in Punjab could be that it is largest an agricultural state where land prices are sharply higher than states with large areas of wasteland.
With this latest win Azure Power has now secured a total of 225 MW capacity under the Punjab solar power policy. The company claims to be the largest developer in Punjab with a share of 14% in the allocated capacity.
Azure Power is among the leading solar power project developers in India and has been participating in auctions since the launch of the National Solar Mission. The company recently commissioned a 100 MW solar PV project that it had secured under the central government auction.
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