The Kerala government has agreed to invest in 200 megawatt (MW) solar energy from the 12,000 MW capacity becoming constructed beneath the manufacturing-linked solar scheme for which the Solar Energy Corporation of India (Seci) has been struggling to discover purchasers.
Under the scheme, the tariff is Rs 2.92 per unit, a lot greater than the tariffs found in subsequent auctions. Kerala’s give marks the 1st instance of a state agreeing to procure energy beneath the scheme.
Kerala’s energy regulator has permitted the state-run energy distribution firm (discom) to invest in electrical energy from the manufacturing-linked tender at a maximum tariff of Rs 2.66 per unit. The cost differential is enabled by the bundling policy adopted by Seci to discover purchasers.
According to sources, Seci has initiated preliminary talks to sell energy from the bundled capacity with Jammu and Kashmir, Odisha and Maharashtra as effectively.
To make the energy more palatable for discoms, Seci is bundling 3,000 MW from the manufacturing-linked capacity auctioned in January, with 3,200 MW of solar projects awarded by way of competitive bids in February and June. Since the February and June auctions found decrease costs of Rs 2.5 per unit and Rs 2.36 per unit respectively, the composite pooled tariff is Rs 2.66 per unit.
Adani Green Energy will create 8,000 MW generation capacity and Azure Power will create 4,000 MW solar plants beneath the manufacturing-linked solar scheme and provide energy to Seci at Rs 2.92 per unit. As a aspect of the deal, the two firms will also create 3,000 MW of solar manufacturing capacities in the nation (Adani 2 GW and Azure 1 GW). Seci being the national aggregator of renewable power, indicators energy obtain agreements (PPAs) with the winning developers in competitive auctions, and subsequently inks energy provide agreements (PSAs) with states to provide electrical energy from these plants.
Along with Adani and Azure, other firms which could discover purchasers by way of this pooled mechanism are ReNew Power, SB Energy (SoftBank), Amp Green, Ayana (CDC Group), IB Vogt Singapore and Avikiran (Enel). Azure had not too long ago mentioned that it expects “a tariff markdown from the price discovered in the (January) auction”, for the project to discover energy. Seci had informed the firm that “so far there has not been adequate response from the state electricity discoms for Seci to be able to sign the PSAs at this stage even though we have a letter of award”.
As FE not too long ago reported, solar projects with combined capacity of 18,000 MW is facing grim prospects with the state-run discoms establishing cold feet on purchasing energy from these projects, as tariffs found beneath subsequent auctions has fallen to the record-low level of Rs 1.99 per unit, buoyed by decrease interest prices, declining solar panel costs, enhanced technologies and assured obtain of energy.