India: Telangana gets lowest bid

The Telangana 2,000MW tender is the largest single PV allocation in India, and as expected by pundits competition was tough. At 250% oversubscription, bids came in from 101 solar project developers according to Bridge to India. SkyPower South East Asia Investments has been cited by Bridge to India and local newspapers as having won a tender with a tariff bid of $0.08/kWh, the lowest so far in the state. This bid is said to be for a 50MW project.

The Ontario-based SkyPower has put in bids for four projects with 50MW capacities each in Telangana according to Indian media Business Standard. Previously the company also agreed on $0.08/kWh prices for PV plants in Madhya Pradesh.

Bridge to India states in its blog that "it is interesting to note that even though the tariffs are aggressive, most developers have bid at tariffs that are on a higher side as compared to those quoted in Madhya Pradesh last month". One reason is seen as the generous allotted commissioning time of 18 months in that state compared to 11 to 12 months elsewhere. Telangana PV projects are likely to be commissioned within 2016, says Bridge to India.

The bidding in Madhya Pradesh is also more competitive as developers expect cost reductions over the longer commissioning period. PV projects are expected to be completed sometime in Q3 2017. Bridge to India also says that availability of government land for lease at a comparatively low costs also has led to competitive bidding in the state.