Indian 1.2 GW solar sees 'hostile' tariffs, Actis buys 400MW of properties

• Azure Power and Tata Power were amongst the champions in a reverse auction for 1.2 GW of solar projects under India's ISTS programme which saw winning tariffs of INR2.43/ kWh (US$ 0.0324).

The tender saw proposals amounting to around 1.7 GW for projects connected to India's Interstate Transmission System (ISTS), and wrapped up with programmers O2 power, Azure Power, Tata Power protecting project capabilities of 400MW, 300MW, 370MW, respectively. AMP Energy won 100MW.

Issued by energy NTPC in February, the auction mentioned that each of the projects must have a capability exercise element of at least 19% and also be commissioned within 24 months.

For Azure, the win comes weeks after obtaining a letter of award for 2GW of added of interstate transmission solar after a greenshoe option in an existing contract with Solar Energy Corporation of India (SECI) was worked out.

According to working as a consultant JMK Research & Analytics, the "highly aggressive" tariffs might be as a result of designers aiming to capitalize on the recent expansion of a 14.9% guard responsibility on the imports of solar cells as well as modules from China. Nevertheless, there remains an opportunity of double taxation in type of secure task in addition to Basic Custom Duty, which was recommended to come in at 20% and rise to as long as 40% following year.

Falling component prices were also mentioned by JMK as a factor for the low tariffs, with a broadening void in supply and also need anticipated for the coming months as a result of a downturn caused by COVID-19.

In June, record-low proposals were received for a SECI tender for 2GW of get in touches with in India. Spain's Solarpack was among the winners, presenting an offer for a 396MW project at a cost of INR2.36/ kWh (US$ 0.031/ kWh).

Actis gets two Indian solar parks from Acme

Also in India, solar projects totalling 400MW have actually been acquired by London-based investment company Actis from Acme Solar Holdings.

Found in the states of Andhra Pradesh as well as Madhya Pradesh, the parks have been purchased by Actis's Actis Long Life Infrastructure Fund (ALLIF).

Actis partner Sanjiv Aggarwal hailed the Indian government's dedication to raising renewable resource manufacturing, producing "attractive financial investment chances". He included that the firm will continue to concentrate on M&An and also PPA auctions in India.

Last year, Actis raised US$ 1.23 billion for ALLIF, with funds destined for existing framework possessions in emerging markets, starting with its own 100MW PV plant in Chile that was obtained from SunPower.

For independent power manufacturer ACME, the divestment unlocks equity worth to strengthen its growth plans in India. The firm has a profile of 5GW spread across multiple states in the country.

Owner Manoj Kumar Upadhyay claimed: "India has a lot of potential for solar power as well as Acme is very well positioned to touch this potential and also produce value for energies as well as consumers."