The Solar Energy Corporation of India (SECI) successfully auctioned 100 MW of grid-connected solar under the domestic content requirement (DCR) category at Ananthapuramu solar park in Andhra Pradesh. These projects will come under the JNNSM Phase-II, Batch-III, Tranche-IV program. Adani and Azure Power won bids to set up projects of 50 MW each. The projects are expected to be commissioned towards the end of the financial year 2017.
Adani won bids by quoting a Viability Gap Funding (VGF) in the amount of Rs.12.7 million (~$187,094) and Azure won bids under VGF in the amount of Rs.13 million (~$191,513), stated an official at the SECI. The projects are being developed on a Build Own Operate basis for SECI.
The SECI will sign power purchase agreements with both solar developers at a fixed price of Rs.4.43 (~$0.065)/kWh for a 25-year period. The nodal agency has also mandated that the solar developers for these projects can use financial incentives such as concessional customs and excise duties, tax holidays, as available for such projects.
According to Mercom’s India Solar Project Tracker, out of the total 2,510 MW of solar projects tendered under JNNSM Phase-II, Batch-III, 200 MW were under the DCR category and 2,195 MW were under the open category.