Still No Takers For One Of India’s Cheapest Solar Projects

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Solairedirect, an international solar developer backed by French energy major Engie, is currently behind schedule for setting up a 250 megawatt solar power project in the Indian state of Andhra Pradesh as there are no buyers identified for the power to be generated.

According to media reports, NTPC Limited — India’s largest power generation company and owner of the solar park where the 250 megawatt project is scheduled to come up — is still looking for final buyers of the electricity from the project. The project was allocated to Solairedirect in April of this year at a record-breaking tariff of Rs 3.15/kWh (4.8¢/kWh).

By convention, the power utilities of Andhra Pradesh were suppose to sign a power purchase agreement with NTPC to procure electricity from the project. However, these utilities have already contracted a large volume of solar power from the projects they themselves have auctioned under the state government’s policy; NTPC allotted the 250 megawatt project under the central government’s policy.

The two power utilities in Andhra Pradesh stated that they do not require any additional solar power at the moment as they have enough to meet their renewable purchase obligation, and that NTPC should look for new buyers. As a result, Solairedirect has been been officially awarded the project.

It is highly surprising that even after nearly six months NTPC has not been able to contract a buyer for the project, as the tariff of Rs 3.15/kWh (4.8¢/kWh) is one of the lowest solar power prices in India and is also cheaper than most of thermal power plants in India. The average tariff of thermal power plants owned by NTPC itself is Rs 3.20/kWh (4.9¢/kWh).

The development may also cast doubts over the future of the Kadapa solar power park development. According to the Solar Energy Corporation of India, Kadapa solar park will have an installed capacity of 1 gigawatt.


Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Latest CleanTechnica TV Video


I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
 
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
 
Thank you!

Advertisement
 
CleanTechnica uses affiliate links. See our policy here.

Saurabh

An avid follower of latest developments in the Indian renewable energy sector.

Saurabh has 1037 posts and counting. See all posts by Saurabh