PPAs signed for 640-MW of solar in India’s Karnataka state

Karnataka Renewable Energy Development Limited (KREDL) this week announced the signing of power purchase agreements for 640 MW of grid-connected solar capacity in the southern Indian state.

The entity, which promotes renewable energy in the state, said the off-take contracts were sealed between various power distribution companies (DISCOMs) and winning bidders in a tender targeting 860 MW grid-connected projects. The tender was completed in February, awarding 760 MW of capacity for 38 taluks in the state. Winning bids ranged between INR 2.94 (USD 0.045/EUR 0.037) per kWh and INR 3.54 per kWh, against a benchmark tariff of INR 3.57 per kWh.

The full list of contracted projects can be seen on KRED’s website.

The PPAs will have to be approved by the Karnataka Electricity Regulatory Commission (KERC), an unnamed KREDL official told consultancy Mercom Capital, adding that consent should be granted in about two weeks. The plants will have to be commissioned within 18 months following approval of the PPAs.

According to the KREDL official, the awarded capacity in the tender was 100 MW below the target, while 100 MW of the bids were launched under the Domestic Content Requirement (DCR) category and had to be cancelled due to requirements of the World Trade Organisation (WTO). In addition, one of the developers backed down, thus reducing the total contracted capacity to 640 MW.

(INR 10 = USD 0.154/EUR 0.126)

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