Domestic companies take lead in solar park tender in Karnataka

In the tender for setting up for 500 MW Solar Park in Karnataka, four leading Indian solar companies outbid foreign players to win major capacities. Rattan Indiapromoted Yarrow Infrastructure won 50 MW by quoting lowest bid of Rs 4.78 per unit among all.

It was closely followed by Adani Power, Acme Solar, Tata Power and Finnish utility Fortum Finnsurya with same bid of Rs 4.79 per unit. They all quoted the bid for 100 MW – two power units of 50 MW each.

ReNew Power, backed by Goldman Sachs in India won 50 MW by quoting Rs 4.8 per unit. All bids were in open category of solar cell procurement. No bids were under domestic sourcing category.

Karnataka is planning to set up 2000 MW solar park Pavagada in Tumakuru (earlier Tumkur) district and this is the first tranche of 500 MW. This would be the largest solar park to be developed in India. Till recently, the upcoming 750 Mw park at Rewa in Madhya Pradesh was being touted as the biggest in the world.

Solar park is an area earmarked for development of solar power generation projects. It is generally expected to offer 500 Mw and above in capacity. NTPC will buy the solar power and bundle with thermal and sell at average price.

Among other bidders in fray were Soft Bank promoted SBG Cleantech, Hero Solar Energy, Azure Power, Canadian Solar etc. They did not win any capacity.

The government’s aim of 100,000 Mw solar power generation by 2022 hinges on the success of 33 solar energy parks with 19,900 Mw capacity being planned across 21 states.

Under the solar park policy, land is provided by the state governments. Around 5 acres are required for one megawatt capacity. The land cost in solar parks, however, is higher than elsewhere, as project operators are offered developed infrastructure. Analysts fear this could lead to increase in final tariffs.

The Union government is giving developers Rs 2 lakh for every MW capacity as viability gap funding if being developed under the solar park policy. The developer recovers the remaining cost from project operators.

The Union government provides the guidelines for development, sets benchmarks and provides incentives. The ministry of new and renewable energy handles the other key area of coordination required for power evacuation.