Andhra Pradesh seeks 500MW of solar in competitive auction

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The Indian state of Andhra Pradesh has opened applications to bid for 500MW of solar capacity.

The state’s Southern Power Distribution and Eastern Power Distribution companies issued a Request for Selection (RfS) for 500MW of grid connected solar on 14 August.

The 500MW auction will accept competitive bids for developing solar projects.

The application deadline to register for taking part in the auction is 17 September, with qualified bidders to be notified on 30 September and Power Purchase Agreements (PPAs) scheduled to be signed on 29 October.

DISCOM (Distribution companies) will offer 25 year PPAs with projects to be completed within 12 months of signing.

The maximum bid capacity is 100MW – but developers can make multiple bids.

The state has more than 300 sunny days a year with an average solar radiation of 5kWh per square metre.

Andhra Pradesh’s main energy use, agriculture could use solar power could help produce power for peak demand for the main energy consumer in the state.

In March, the Solar Energy Corporation of India (SEIC) announced plans to build a 1GW solar factory in Andhra Pradesh.  

Andhra Pradesh suffers from power shortages currently, predicted to continue for the next five years and also has a 5% Renewable Power Purchase Obligation (RPO). Previously, the state has successfully held large solar auctions to aid the energy deficit and contribute to the RPO.

India is to decide on anti-dumping duties this Friday, 22 August, the state auction has no local content or foreign import stipulations.

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