Fortum wins bid for solar project at tariff below Rs.5/unit

The reverse auction by state-run generator NTPC for 500 MW capacity at Pavagada Solar Park in Karnataka has secured bids for tariffs below Rs.5 per unit, with Finland's Fortum securing a 100 MW solar project, the latter announced on Wednesday.

"Fortum has won a bid in the reverse auction process conducted by NTPC on 12th April 2016 for the selection of 500 megawatt (MW) grid connected solar PV projects. Fortum secured 100 MW in this bid," the state-run Finnish energy major said in a release here and in Helsinki.

The solar power plant in Pavagada Solar Park in Tumkur district of Karnataka will be built in India with a fixed tariff of Rs.4.79/kWh for 25 years, it added.

Fortum earlier quoted the record low price of Rs.4.34 per unit in January to bag a 70 MW solar plant under NTPC's Bhadla Solar Park in Rajasthan.

"Fortum seeks to allocate some of its planned growth capital in the range of Euro 200-400 million in solar projects in India," Fortum India managing director Sanjay Aggarwal said in the statement, reiterating the company announcement made in this regard on Tuesday.

While Adani, Fortum India, ACME and Tata Power Renewable Energy quoted the price of Rs.4.79 per unit and bagged 100 MW each, Yarrow Infrastructure, at Rs.4.78 per unit, and Renew Power, at Rs.4.80, bagged 50 MW projects each under the auction conducted by NTPC on Tuesday, a source here said.