Sunborne Energy submitted the tariff bid of Rs. 6.49/kWh. It will now be applicable for all solar developers interested in installing photovoltaic plants under the Andhra Pradesh state policy.
The tariff set in Tamil Nadu was almost the same at Rs. 6.48/kWh, but its more profitable since there is a tariff escalation of 5% every year for the first 10 years.
The response of solar developers participating in this allocation process had been overly enthusiastic and they are now disappointed about the tariff chosen, RESolve said in a statement released yesterday. In fact, the allocation process was oversubscribed, according to Jasmeet Khurana, head of market intelligence at solar energy consulting company, Bridge to India.
In contrast, allocations for Tamil Nadu were undersubscribed and a capacity of 226 MW has been allocated, according to Bridge to India. Meanwhile, in Andhra Pradesh, the final allocated capacity is yet to be confirmed.
In the first quarter of 2013, the Indian states of Tamil Nadu and Andhra Pradesh, had each announced policies for the allocation of 1 GW of PV projects.
In 2010, India launched the Jawaharlal Nehru National Solar Mission (JNNSM), which aims to install 20 GW of solar power by 2022. According to Jasmeet Khurana, close to 1.5 GW of photovoltaic projects are currently under development in India. He forecasts that over 1 GW of new capacity will be installed this year. Meanwhile, for 2014, he expects a total of 2 GW of new installations.
Finally, the Ministry of New and Renewable Energy (MNRE) has released on April 22 the draft guidelines for the second phase of batch 1 under the Jawaharlal Nehru National Solar Mission (JNNSM) to set up 750 MW of grid solar PV power projects..