According to officials, the project is expected to be completed next May, subject to availability of materials. AP has already signed power purchase agreement (PPA) with the Gujarat government. As such, it expects to receive a tariff of INR 12 per kWh for first 12 years: this will decrease to INR 3 per kWh from the 13th to the 25th year.
The company has said that Aries Waaree Solar Pvt Ltd (AWSPL), a joint venture between Aries Ingenieria y Sistemas, Spain and Waaree Group, India, will execute the project. The joint venture will offer complete consultancy and engineering support for the setting-up of the project.
Although AP is primarily engaged in developing coal-based projects – at present it has operational capacities of 990 MW – the company believes that solar power has a bright future in India, due to high irradiation levels and escalating energy demands.