India Signs Power Contracts for 700 Megawatts of Solar Capacity

Apr 16, 2014 5:40 am ET

April 16 (Bloomberg) -- India signed contracts to purchase solar power from companies building 700 megawatts of capacity awarded in a national auction.

The government is waiting to sign purchase agreements for the remaining 50 megawatts from the auction in February, Tarun Kapoor, joint secretary at the Ministry of New and Renewable Energy, said today in an interview in New Delhi. The agreements, which lock in rates for the power generated for 25 years, bind developers to complete the plants within 13 months.

Two developers dropped out after winning bids, including St. Peters, Missouri-based SunEdison Inc., which said last week it gave up a 20-megawatt project because local equipment shortages and prices make it unviable. The other developer that Kapoor didn’t identify forfeited its project after failing to get permission from its parent to proceed, he said.

Kapoor ruled out extending the 13-month commissioning deadline after an industry lobby requested more time this month amid a dispute between developers and local equipment suppliers.