PPA depends on land prices, market conditions: Solar Assn

Solar Power Developer's Association, representing solar power generators and developers in the country, today said the power purchase agreements signed between governments and companies depend on land prices and market conditions.
On rate differences under PPA signed between companies and the governments, the Association said, "Land prices vary according to geography, market conditions and to a large extent influences the tariff the power producer quotes."
"Solar radiation levels and weather conditions are paramount for choice of location and the cost at which power is sold.
"Temperature and weather conditions are less conducive for receptivity solar radiation in Tamil Nadu as compared to northern states like Gujarat, Madhya Pradesh and Rajasthan", Solar Power Developer's Association, Director General, Shekhar Dutt, said in a statement.

Noting that the solar power production expense was declining fast and expected to attain grid parity by 2017, he said, "The cost of solar power has come down from Rs 15 per unit in 2013 to Rs 6-6.50 in 2015."
He said Madhya Pradesh, through a competitive bidding mechanism, arrived at a lowest cost of solar power purchase agreement with a company at Rs 5.05 per unit, recently while Gujarat has signed similar agreements for over Rs 8 and in some cases it was Rs 12 per unit in order to augment power availability.
In June this year, business conglomerate Adani Group signed an agreement with the Tamil Nadu government to set up a solar park in State with an outlay of Rs 4,536 crore.

The five solar power generation centres would come up with a total capacity of 648 MW in Ramanathapuram district.The power generated would be purchased at Rs 7.01 per unit by the government, an official release had said.