Indian energy conglomerate National Thermal Power Corporation (NTPC) has awarded a 500MW deal to US-based SunEdison to sell solar energy in the country.
The firm had offered the lowest bid for a 500MW project in the state of Andhra Pradesh.
It had proposed the lowest solar tariff of Rs4.63 ($0.0706) per kilowatt-hour (kWh) for supplying power, beating the previous lowest solar tariff in India set by Canadian SkyPower with Rs5.05 per kWh for a 150MW project in Madhya Pradesh.
NTPC had received around 30 bids in total for the reverse e-auction, totalling 5,500MW of solar energy capacity.
Indian power, coal and renewable energy minister Piyush Goyal tweeted: "Delighted that an all-time low solar tariff … has been achieved during reverse e-auction conducted by NTPC."
SunEdison’s win is expected to boost the appeal of renewable energy in the country, especially at a time when Indian Prime Minister Narendra Modi is supporting clean power generation to combat climate change.
The deal is expected to see the US renewable giant develop ten solar farms under the Indian government’s Jawaharlal Nehru National Solar Mission.
Each of the projects with 50MW capacity will be set up at Gani-Sakunala Solar Park in Kurnool District of Andhra Pradesh.
Bloomberg has cited analyst and investor concerns, as they have been saying that projects are unlikely to be developed at such aggressive prices.
India has 4GW of solar capacity at present and plans to set a target to install 100GW of solar capacity by 2022, in order to reduce its dependency on fossil fuels, especially coal.
Image: The deal is expected to see the US renewable giant develop ten solar farms in Andhra Pradesh. Photo: courtesy of Naypong/ FreeDigitalPhotos.net.