The finalization of tender for the development of 5.8 GW solar power plants by the state-owned Andhra Pradesh Green Energy Corporation (APGECL) allows to supply uninterrupted free power to the farmers, according to GlobalData.
The move forms part of a strategy to achieve 10 GW solar target for the farming needs of the state of Andhra Pradesh.
The successful bidders of the tender are Adani Renewable Energy Holding Twelve (2.4 GW), Shirdi Sai Electricals (2.2 GW), NTPC 0.6 GW), Torrent Power (0.3 GW) and HES Infra (0.3 GW). The tariffs for successful bids were in the range of INR2.47 to INR2.49 per kWh.
“The tariffs under the 6.4 GW tender are 52 percent lower than what the state government is currently procuring at and is set to reduce the financial burden on the government exchequer,” Pavan Vyakaranam, project manager of Power at GlobalData, said.
A bid from Adani for the 600 MW Chandrasekharapuram Solar PV Park in Prakasam district was not finalized yet and is currently under further examination by the committee due to higher tariff of INR2.58 per kWh.
The tender failed to be anywhere near the record INR 1.99 per kWh tariff achieved by Gujarat Urja Vikas Nigam Ltd’s (GUVNL) 500 MW auction in December 2020, as many developers mainly foreign or foreign funded did not evince interest.