Solar Parks Targets Doubled, Reverse Bidding in Wind,and more – The Sunday RE Brunch 6(26/2/2017)

While the entire Indian solar industry went industry went into a tizzy regarding the Rs. 3.29/kWh Rewa bid, it is not the lowest bid in the world. That record goes to a September 2016 auction in United Arab Emirates, which was 50% lower than the Rewa bid. The reasons are mentioned in this source. While the Rewa bid may not be world’s lowest bid, with reduced cost of capital, India could very soon reach there.
Following the success of  reverse bidding in Solar, the SECI conducted a bidding for allotment of 1000 MW of wind projects, and Mytrah Energy, Green Infra, Inox and Ostro Energy, won the rights to set up 250-MW wind projects each and sell energy to Power Trading Corporation, at a price of ₹3.46/kWh. More here and here. The projects will come up in Tamil Nadu and Gujarat.
While on Rewa bid, the low bids there seems to have validated the idea of Solar Parks, and the government has quickly doubled the target for setting up Solar Parks from 20 GW to 40 GW(more here).
REC Trading for the month of February 2017 took place last week. The trading volumes for non-solar RECs were good(though lower than the record trading in January 2017), but trading of solar RECs was stagnant compared to February 2017. Since the REC price range is expected to see a large drop from April 2017, when the price range will be revised. More details at RE-Connect.
On the DISCOM Restructuring side, Sikkim became the 22nd state to join UDAY scheme and is expected to benefit to the tune of Rs. 207 crores. Tamil Nadu, Assam and Telangana joined UDAY scheme last month. The full list of states under UDAY scheme is available here.
On funding/financing news, Solairedirect raised Rs. 675 Crores from IDFC Bank for a 140 MW solar project in Bhadla Solar park in the form of project financing. According to ET, this 18 year debt is based on a 70:30 Debt-Equity ratio, and has 11% interest during construction phase and 10.5% interest during commercial operations.
That broadly covers the major news last week. Have a nice day ahead.
This blog series is supported by Aspiration Cleantech Ventures)
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