New Delhi: Two wind energy companies in India have bagged solar projects worth a more than a quarter of the total capacity on offer from the country’s largest auction to date.
Wind power producer Mytrah Energy Ltd. won a contract for 327 megawatts of solar capacity in the southern state of Telangana, which issued a tender in April 2015 for as much as 2,000 megawatts. Suzlon Energy Ltd., the nation’s biggest wind turbine maker, won its first ever solar contract with a successful bid for 210 megawatts in Telangana.
The efforts of India’s wind companies to diversify reflects Prime Minister Narendra Modi’s ambition to install 100 gigawatts of solar power across India by 2022 at an estimated cost of $100 billion. Current solar capacity in the country is just over 4 gigawatts.
“We are also working on integrated renewable energy solutions by combining wind and solar projects at a single location," Suzlon Group’s chairman Tulsi Tanti said in the statement.
Mytrah will sign power purchase agreements with the state power utility Southern Power Distribution Co. of Telangana Ltd. by the middle of next month.
“The tariff range for these projects, which will be built in a distributed way across the state, is from Rs5.59 per kilowatt hour to Rs5.72 per kilowatt hour," Vikram Kailas, managing director at Mytrah Energy, said by phone.
Suzlon will build one project of 100 megawatts, one of 50 megawatts and four of 15 megawatts each across the state and will commission them in fiscal year ending in 2017, according to a statement from Suzlon.
“The tariffs range from Rs5.49 a kilowatt hour to Rs5.59 a kilowatt hour," said Rohit Modi, Suzlon’s chief executive officer for international operation and new business.
These solar projects will be built under six different entities known as special purpose vehicles. An existing subsidiary of Suzlon has acquired Amun Solarfarms Private Ltd., Avighna Solarfarms Private Ltd., Prathamesh Solarfarms Private Ltd., Rudra Solarfarms Private Ltd. and Vayudoot Solarfarms Private Ltd.
Suzlon will sign six power purchase agreements this month with the state utilities for a 25 year period, it added.
In April 2015, state utility Southern Power Distribution Company of Telangana Ltd invited bids for building 2,000 megawatt solar PV projects through a tariff based, competitive bidding process with a distributed generation model to utilize substation capacities across the state.
Suzlon has a cumulative wind capacity of 15 gigawatts across the world, of which about 9 gigawatts is in India. Mytrah Energy had 543 megawatts of revenue-generating wind assets as of June 2015. Bloomberg