US-based Solar SunEdison today said it has signed a long-term power purchase agreement (PPA) with Tata Power Delhi Distribution Ltd (TPDDL) to provide 180 MW solar power for latter's consumers in New Delhi.
"SunEdison has signed a long-term PPA with TPDDL to provide 180 MW of utility-scale solar power for the people of New Delhi," SunEdison's president of Asia-Pacific and Sub-Saharan Africa Pashupathy Gopalan said at a press conference here.
Gopalan said the agreement to supply solar power will be for a period of 20 years after commissioning of the projects located in Shivpuri in Madhya Pradesh.
He further said the solar power projects for the PPA are expected to be operational in next one and half year and the company is about 6-9 months away from the financial closure of the projects.
On the tariff under PPA, he said the company will supply power at two rates--Rs 5.93 per unit (Kwh) and Rs 5.97 per unit.
The final tariff or landing cost of power after factoring in various other expenses will be Rs 6.49 per unit and Rs 6.52 per unit.
About concerns that the tariff is on "higher" side, Gopalan said that since the PPA is for a long period, the prices would be competitive than the rate of conventional energy in coming years as there is no risk of fluctuation in fuel rates.
An official of the TPDDL said this PPA will help the company meet almost 50 per cent of its Renewable Purchase Obligation (RPO).
In the present legal framework, the distribution companies have to buy a specified proportion of power from renewable energy producers.
The official said TPDDL is under obligation to buy 9 per cent of its total power purchase from renewable energy sources and this agreement will help meet almost 100 per cent its RPO by 2017.
Besides, the company is promoting rooftop solar panels in the area of operation in Delhi which has the potential of installing 400 MW of such panels.
