India invites bids for solar plants in first auction since 2011
The program seeks to reduce solar power costs to levels in line with other forms of grid-supplied electricity by 2017
Mumbai: India called for bids to build 750 megawatts (MWs) of solar plants in its first national auction since 2011 and is offering about ₹ 18.75 billion ($303 million) in grants.
Bids are due by 29 November , state-run Solar Energy Corp. of India said on its website.
Tender documents will be available from 14 October.
Developers will submit bids specifying the funds they’re seeking and the lowest bidders will win.
The government grants will cover as much as 30%of the project cost.
Companies such as Welspun Group, backed by Leon Black’s Apollo Global Management LLC, and billionaire Vinod Khosla’s Sunborne Energy Holdings LLC have built nearly 2,000 MWs of solar capacity and cut average costs by more than half since India began auctioning licenses through its National Solar Mission in 2010.
The program seeks to reduce solar power costs to levels in line with other forms of grid-supplied electricity by 2017.
Of the 750 MWs, 350 MWs must be built with domestically manufactured solar cells and panels, according to revised rules published on the ministry of new and renewable energy’s website.
“Forcing projects to buy local equipment will raise costs and compromise quality," Vineet Mittal, managing director of Welspun Energy Ltd., India’s biggest photovoltaic developer, said in an August interview.
The government will stagger disbursal of the grants to ensure projects meet milestones, the ministry’s rules show.
50% will be paid upon plant completion and the balance in 10% increments over the following five years, if generation targets are met.
Investors will be able to sell their projects after a one- year, lock-in period. Moser Baer India Ltd, Lanco Infratech Ltd, Indosolar Ltd, and Websol Energy System Ltd are among the biggest Indian makers of solar equipment. BLOOMBERG
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