The bid results for the 500MW solar tender in the state of Andhra Pradesh, India reveals that US thin film manufacturer, First Solar has submitted the lowest bid.
First Solar submitted bids of INR5.25/kWh (US$0.086) for 40MW and INR5.35 (US$0.087) for another 40MW.
All other bids ranged from INR5.63-8.08/kWh (US$0.092-0.132)), with projects ranging in size from 3MW to the upper limit of 100MW.
The 500MW tender auction was oversubscribed by more than double; there were 63 bids, totalling 1291MW in proposed solar developments.
Developers had to bid the tariff rate for power generated for the first year of the proposed plants operation.
The state’s Southern Power Distribution and Eastern Power Distribution companies issued a Request for Selection (RfS) for the 500MW of grid connected solar, on 14 August.
DISCOM (Distribution companies) will offer 25-year Power Purchase Agreements (PPAs) with projects to be completed within 12 months of signing. PPAs offered are scheduled to be signed on 29 October.
Developers bidding in the tender include big names such as: Acme, SunEdison, Azure, Welspun and NV Vogt.
There are no limitations for domestic content or foreign developers for state-level solar auctions in India, First Solar enjoyed early success in India as a major thin film manufacturer.
The Indian government also revealed details this month of an auction of 1GW of solar projects in Andhra Pradesh that will form the first part of a national 15GW roll out of PV between now and 2019.
Recently the national solar mission (NSM) has been reformed, offering domestic manufacturers support and removing DCR restrictions. A report earlier this mounth found that domestic manufacturing capacity is not enough with the government keen to rollout substantial generation capacity now.
In March, the Solar Energy Corporation of India (SEIC) announced plans to build a 1GW solar factory in Andhra Pradesh.
Andhra Pradesh is a leading solar state in India, with more than 300 sunny days a year with an average solar radiation of 5kWh per square metre.