Solar Power in India Key Highlights and Government Plans:

In India, the worlds biggest greenhouse gas emitter after the US and China,
renewable energy currently accounts for only 13%, or 36,471 MW, of the total
installed power capacity of 2,75,912 MW.

While India has a solar generation capacity of 2,900MW, the BJP-led

government has substantially revised an earlier target of achieving 20,000
MW capacity by 2022 to 100,000 MW.

This would require an investment of around Rs.6.5 trillion over five years.

Of the total 100,000 MW of solar power capacity planned by 2022, 20,000

MW will come from solar parks and 40,000 MW each from roof-top and
distributed generation projects.

The government plans to set up 25 solar power parks.

While the present installation cost of a solar project is around Rs.6 crore per
MW, economies of scale are expected to drive down the cost to Rs.4.5 crore
per MW

India is fit for solar power generation given that the country receives solar
radiation of 5 to 7 (kWh) per sq. m for 300-330 days in a year.

India plans to award 15,000 MW of solar projects this year

The states have already tendered for around 3000 MW.

Also, NTPC has already tendered 2600 MW.

According to the plan, Solar Energy Corp. of India (SECI) will shortly call for
bids from developers for buying 2,000 MW

Telangana solar power Bids for 2000 MW:

SkyPower offered lowest bid with an offer of 5.17 per unit for one project of
50 MW and 5.26 for three projects of 50 MW each
The ACME Group alone has bagged the mandate for 446 MW in the bid
process, accounting for 22 per cent of the 2,000 MW tender at weighted
average tariff of 5.84 per unit
 Sun Edison, Adani Green Energy, Mytrah Energy, Suzlon, Gestamp, Shaapoorji
Pallonji, Renew Solar Power, Enercon Solar, Karvy, Aditya Birla, and Reliance
Changer Limited are among other firms that have won.
While the utilities invited tenders for 2,000 MW, they received bids for
generating 5,998 MW.

India plans to provide solar power at new low of Rs4.75 per unit to states:
In response to tenders for setting up 10 projects of 50 MW each, bids totaling
around 5,500 MW were receive under the national solar mission (NSM) in
Andhra Pradesh
This has set the stage for aggressive tariffs to be quoted by the developers,
with Rs.4.75- Rs.5 per kWh tariff becoming the new norm

State-owned NTPC Ltd has been calling for bids from solar project developers
for buying 15,000 megawatts on behalf of the ministry of new and renewable
energy. This is in addition to NTPCs plans to set up 10,000 MW of solar power
capacity on its own.
With the developers expected to quote bids in the region ofRs.3.50 per unit,
NTPC will sell the power to the states at Rs.4.75 per unit, with the balance
going to a hedge fund to cover the foreign exchange risk
Also a recent bidding in Punjab, a state with relatively lower irradiation and
higher cost of land, was an eye-opener with tariffs in the range of Rs.5.09-
5.98 per kWh

Growing interest from overseas investors in the Indian renewable energy

space:

A number of utilities and private equity (PE) firms are trying to get a slice of
Indias growing green energy pie which include

o NYSE-listed Brookfield Asset Management,

o Switzerland-based PE firm Partners Group AG,

o infrastructure investment manager I Squared Capital,

o Dubais PE firm Abraaj Group

o Doha-based Nebras Power QSC.

o Russias OAO Rosneft, the worlds largest publicly traded oil company,

o US-based First Solar and

o Chinas Trina Solar

 In June, SoftBank, along with Bharti Enterprises Ltd and Taiwans Foxconn
Technology, proposed to invest at least $20 billion in solar energy projects in
India through joint venture SB Cleantech Ltd.

Prominent new entrants include SoftBank, Trina Solar, Enel, Energon, Solar
Arise, Suzlon and Greenko