India: SkyPower agrees 200 MW solar PPA with Telangana government

Canada-based solar project developer SkyPower has signed four power purchase agreements (PPAs) with the government of Indian state Telangana for the development of 200 MW of solar PV capacity.

The agreement follows on the heels of a 400 MW development contract signed last year between SkyPower and the Madhya Pradesh and Telangana governments, and will serve to dramatically augment clean energy development in one of India’s most progressive states for clean energy.

Four PPAs were signed in total, each outlining the details of a large-scale solar project for Telangana. India is eyeing the installation of 100 GW of solar PV capacity nationwide by 2022 as part of its National Solar Mission, so deals such as this are seen as imperative if the nation is to reach its solar goals.

"India is a world leader in deploying solar, not only with its significant targets but through its very actions," said SkyPower CEO and president Kerry Adler.

"SkyPower is committed to making a powerful contribution to India’s goal of generating 100 GW of solar power by 2022, while the people of Telangana will benefit from clean, reliable and affordable energy as a result of the vision and leadership of this great state."

Construction for these four plants – and those agreed under the Madhya Pradesh deal – will commence in 2016, SkyPower confirmed.

Last summer when Telangana held its solar auction for 2 GW of projects, Skypower struck a then-record low bid of INR 5.17 ($0.08/kWh) for a 50 MW solar project – thought to be one of the four PPAs agreed with Telangana’s government this week.

In other news, SkyPower has also revealed that it has now become a Climate Bonds Partner on the back of its growing footprint for solar energy, which now amounts to more than 25 GW of projects globally.

"Access to capital is by far the biggest factor impacting the spread of solar energy project developments," said Adler. "This partnership will exponentially grow the green debt capital market, thereby driving down the cost of capital for solar energy projects."