SunEdison wins NTPC’s 500 MW solar project with Rs4.63/kWh bid

04 Nov 2015

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US renewable power company SunEdison Inc has won an online auction to build 500 MW of solar power capacity in Andhra Pradesh, bidding at a record low tariff of Rs4.63 per kWh, the lowest for any Indian solar power plant.

The previous lowest solar tariff in India was about Rs5.05 per kilowatt-hour quoted by Canadian company SkyPower for a project in Madhya Pradesh.

Bidding for the online auction for 500 MW solar capacity held by power utility NTPC Ltd continued late into Tuesday night.

Solar power developers have bid for a total of 5.5 GW in the Andhra Pradesh tender.

China's Trina Solar is reported to have proposed the lowest tariff of Rs5.21/kWh during the first bidding round of the auction.

Power minister Piyush Goyal in a tweet expressed his satisfaction with the all-time low tariff with which SunEdison won the second bidding round.

''Delighted that an all time low solar tariff of Rs 4.63 has been achieved during reverse e-auction conducted by NTPC,'' Goel tweeted.

The record low tariff, which could boost the appeal of the renewable source at a time when Prime Minister Narendra Modi is pushing for clean energy to combat climate change.

However, solar power cannot yet compete with coal-abased power which costs as low as Rs1.5 to a maximum of Rs5 per kWh.

But falling rates along with government support could make solar and wind energy attractive for investors like SunEdison and First Solar Inc.

With an estimated $160 billion business in clean energy projects in India in the next five years, these US companies could also be the biggest beneficiaries.

For Maryland Heights, Missouri-based SunEdison, the record low bid has been made possible mainly because state-owned NTPC will be buying the electricity and the readily available infrastructure that reduces the investment risk.

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