Canada-based SkyPower Southeast Asia has won a 50MW solar project in the Indian state of Telangana with another lowest bid at INR5.17/kWh (US$0.0807/kWh).
In the 2GW state auction on Monday, SkyPower also won two other 50MW projects with bids of INR5.26/kWh and INR5.3719/kWh and a fourth project in Category 2 of the bid, according to a company representative for Gensol Engineering, who was present during the financial bid announcements.
State-owned utility of Telangana, TSSPDCL, was responsible for floating the 2GW tender.
SkyPower recently won a 50MW project with the lowest bid ever in India for the state of Madhya Pradesh’s auction at INR5.05/kWh, which sparked concern in the industry about the viability of projects at that price coming to fruition in the Indian market.
Ashish Verma, consultant at Gensol Engineering, told PV Tech that given the result in Madhya Pradesh, there was little surprise with the new results for Telangana, however it does raise “serious concern” about the financial returns of the projects at current domestic pricing norms.
Verma added: “The Indian solar market has sped up with announcement of 100GW solar target by the year 2022 and that can be seen from the recent tenders floated by the largest power producer NTPC, states like Madhya Pradesh, Telangana, Uttar Pradesh and Punjab.”
Verma also said he hopes India will overcome shortages of EPC contractors, land-availability issues and achieve financial closure for projects on time for its 6/7GW pipeline for the financial year 2015/16.
This article has been revised to say that SkyPower won four projects