SkyPower, one of the leading renewable energy project developers globally, has signed a power sale agreement for the projects it had secured in a competitive auction held June 2015.
SkyPower, through a subsidiary–Mauritius-based SkyPower Southeast Asia Holdings–secured rights to develop 3 projects of 50 MW capacity each at tariffs ranging from Rs 5.051/kWh (7.95¢/kWh) to Rs 5.298/kWh (8.34¢/kWh). The power sale agreement was signed with the Madhya Pradesh Power Management Company Limited.
One of those 3 bids remains the lowest-ever bid in India. The bid placed by SkyPower is 28% lower than the tariff determined by the Central Electricity Regulatory Commission (CERC) for the current financial year. The CERC has determined a tariff of Rs 7.04/kWh as a financially viable rate for solar PV projects.
The projects are likely to be commissioned together at a single site, and the overall project would likely be the largest solar power project in the state developed by a single developer. Welspun Energy currently operates 151 MW (DC) of solar power projects in the state.
Several international companies are working to set up projects in Madhya Pradesh. The June auction saw participation from global leaders like SunEdison and First Solar. SunEdison is setting up a large-scale solar power project, outside the ambit of auctions, in Madhya Pradesh. Earlier this year, SunEdison signed a power sale agreement with Tata Power Delhi Distribution Limited, a Delhi-based utility. The agreement is for 180 MW capacity for 20 years.
SkyPower has set a target to add 9.9 GW solar power capacity in India over the next 5–7 years. The company plans to soon announce the launch of its India Solar Fund, which will provide a platform for investors, partners, and stakeholders to invest alongside SkyPower and participate with SkyPower as it grows throughout India.