Independent power producer Mytrah Energy Ltd has decided not to go aggressive with bidding for solar power projects as the viability of these projects is yet to be established. The company has projects of 377 MW in solar, and would wait for it to complete the cycle of execution and operation, said a top company official.
The company, which began operations by setting up wind power projects, is looking to add 780 MW of power by May and has also lined up construction of 220 MW for the next wind season.
“Our bids (in solar projects) are generally higher than the average and we will maintain a discipline in determining when to bid and when not, in tune with our margin expectation thresholds. Lots of bids have gone aggressive and we are not willing to participate just for size. Solar still is a very new industry and we will see how it gets financed and executed,” said Ravi Kailas, chairman and chief executive of Mytrah in an interview.
India’s has set itself a target of 175 gigawatt (GW) of renewable energy by 2022, which includes 100 GW of solar, 60 GW of wind and 10 GW of biomass and 5 GW of small hydro.
Typically a solar power plant produces one third to one fourth of the power that a coal plant can generate in a year’s time.
“There has been a lot of competition, especially in the last 7-8 months. And the lowest bid now is Rs.4.34 kilowatt per hour. Most of the low bids are by foreign companies. The general perception is anything below Rs.5 is low and belowRs.4.5 very risky. The viability depends on the cost of the plant and the cost of financing,” said Bharat Bhushan Agrawal, senior analyst-India solar, Bloomberg New Energy Finance
Source: Mint; 18 March 2016