SOME REMARKABLE CASE STUDIES OF SOLAR PARKS IN INDIA

Rewa Solar Park in Madhya Pradesh (750 MW)

The Rewa Solar Park was developed by Rewa Ultra Mega Solar Limited (RUMSL); a Joint Venture Company (JVC ) of SECI and MPUVNL. In a recent bid for 750 MW Solar Power Project at Rewa Solar Park in Madhya Pradesh, a levelized tariff of Rs3.30/kWh was achieved, the tariff so discovered would depend inter alia on the cost of long-term debt and prices of solar modules. Further, the tariff of Rewa project has been lower on account of effective mitigation of risks under the PPAs, bankability, and robust project preparation process. The tariff of Rewa Project is not unviable; rather it is low on account of its better project structure, bankability, balanced risk allocation, pre-identified available land, the readiness of internal and external evaluation structure, and a soft loan from the World Bank.

The projects (three units each of 250 MW) were awarded to the three successful bidders.

The tariff of Rs2.97, Rs2.974, and Rs2.979 per kWh discovered for the three 250 MW units each of Rewa project is the first-year tariff with 5 paise per year increase for 15 years. The levelized tariff for 25 years of Rewa Solar Park projects would be around Rs3.30/kWh.

Kadapa Solar Park in Andhra Pradesh (1,000 MW)

The Kadapa Solar Park in Andhra Pradesh (1,000 MW) developed by Andhra Pradesh Solar Power Corporation Pvt. Ltd. (APSPCL); a JVC of SECI, APGENCO, and NREDCAP have also set a new record after the success of Rewa Solar Park. Solairedirect emerged as the lowest bidder with a tariff Rs3.15 a unit, a new low, for the 250 MW capacity. The winning bid at the Kadapa Solar Park being set up by NTPC is the levelized tariff for 25 years with no escalation. This is lower than the lowest bid received for the 750 MW Rewa Solar Park. The reason is the falling prices of solar panels. Another reason for the aggressive bidding is the number of solar power projects offered by states is declining.

Bhadla Phase IV Solar Park in Rajasthan (500 MW)

The Bhadla Phase IV Solar Park in Rajasthan (500 MW) was developed by Adani Renewable Energy Park Rajasthan Limited (AREPRL): a JVC of Adani Renewable and State Government of Rajasthan. In bidding process of Bhadla IV, SECI has been invited the bids for 250 MW. In reverse auction Phelan Energy Group and Avaada Power at a tariff of Rs2.62 per unit won the contracts for 100 MW each. SBG Cleantech won the rest 50 MW at Rs2.63.

Bhadla Phase III Solar Park in Rajasthan (1,000 MW)

The Bhadla Phase III Solar Park in Rajasthan (1,000 MW) was developed by Surya Urja Rajasthan Ltd: a JVC of Surya Urja and State Government of Rajasthan. In bidding process of Bhadla III, SECI invited the bids for 500 MW and set up a new era of the solar tariff with the new lowest in Indian solar sector beating the previous record of Rs2.62 per unit. In reverse auction, ACME at a tariff of Rs2.44 per unit won the contracts for 200 MW. SBG won the rest 300 MW at Rs2.46. It helps in the vision of clean affordable power for all at very low prices.

Pavagada Solar Park in Karnataka (2,000 MW)

The Pavagada Solar Park in Karnataka (2,000 MW) was developed by the Karnataka Solar Power Development Corporation Ltd (KSPDCL); a JVC of KREDL and SECI, which is also one of the first projects of its kind in the world. Here, 200 MW grid connected solar photovoltaic power projects along with large scale with 15 min battery energy storage facility is to be set by SECI.

Kurnool Solar Park in Andhra Pradesh (1,000)

The Kurnool Solar Park (1,000 MW) was developed by Andhra Pradesh Solar Power Corporation Pvt. Ltd. (APSPCL); a JVC of SECI, APGENCO, and NREDCAP. Solar Park set up in Gani and Sakunala village of Orval Madal in Kurnool District of Andhra Pradesh had been commissioned and is operational since March, 2017. Around 240 MU of clean energy is generated from this park till end of May resulting in savings of 2.1 lakh tonnes of CO2 emissions. With commissioning of 1,000 MW capacity at single location, Kurnool Solar Park has emerged as the world’s largest solar park after 850 MW Longyangxia Dam Solar Park, China which was commissioned in 2016.

The government is promoting solar energy through fiscal and promotional incentives, such as capital subsidy, tax holiday on the earnings for 10 years, generation-based incentive, accelerated depreciation, viability gap funding (VGF), financing solar rooftop systems as part of home loan, concessional custom duty, exemption from excise duty, preferential tariff for power generation from renewables, and foreign direct investment up to 100 per cent under the automatic route, etc

Article Courtesy : Shri Radhey Shyam Meena, Shri Dilip Nigam, Shri S K Gupta, Shri A S Parira, Ministry of New and Renewable Energy (MNRE), Government of India, New Delhi; and Dr A K Tripathi, National Institute of Solar Energy (NISE), Gurugram, India. Email: rshyam.mnre@gov.in