PV prices is likely to decline further after India’s biggest auction took place. At the auction, there were various companies, such as SkyPower and SunEdison, competing with local firms. Among all companies, Acme Cleantech Solutions and Mytrah Energy emerged as the top winners in bids to build 2,000MW of solar farms in the Southern state of Telangana. Together, they gained 763MW of contracts.
The result showed progress in Prime Minister Narendra Modi’s goal to install 100GW of solar capacity by 2022 in order to expand India’s electricity production while reducing pollution. The country currently has 4GW of solar capacity, or 4,000MW.
SkyPower, which is based in Toronto, submitted the lowest bid, quoting a tariff of 5.17 rupees per kilowatt-hour, which won it a contract to develop a 200MW solar farm, said Dilip Kumar, superintendent engineer at Southern Power Distribution Company of Telangana.
Overseas developers entering the Indian market are reducing the cost of solar farms, forcing local companies to lower the rates they’re seeking. The full breakdown of winners from this auction will take a few more days to finalize.
Local Company’s Work
Acme won contracts to build 436MW of projects including a 335MW plant at a tariff 5.82 rupees a kilowatt-hour in the utility-scale category and 111MW at a tariff of 5.88 rupees for smaller “distributed” units, according to the company’s founder Manoj Kumar Upadhyay. “Global competition is keeping us on our toes for profitability,” he said.
Wind energy company Mytrah sealed a deal for 327MW at a tariff of 5.75 rupees, of which 150MW is under the utility-scale category. “This win is line with our strategy of diversifying into solar and is a huge responsibility,” said Vikram Kailas, the company’s managing director.