Fortum commissioned a 70 MW solar project at Bhadla Phase-II
Solar Park in Rajasthan under National Solar Mission (NSM) Phase-II, Batch-II,
Tranche-I. The 70 MW solar project is Fortum's third and so far biggest
commissioned solar energy project, stated
the company. The power purchase agreement for the project was signed in March
2016 with National Thermal Power Corporation (NTPC) for a 25-year period.
According to the Mercom's
India Solar Project Tracker, Fortum
won the bid to develop the project by quoting Rs.4.34 (~$0.067)/kWh in the
JNNSM Phase II Batch 2 auction in Rajasthan, which was a record low bid at that
time. Module price decline of 30% last year was an unexpected bonus for the
company. Fortum had also stated that the low bid was viable for them because
they had access to internal financing, which reduced their borrowing costs by a
significant margin. In fact, a Rs.4.34 (~$0.067)/kWh is very attractive right
now considering the new record low is Rs.3.30 (~$0.494)/kWh logged at the REWA
auction last month.
of now, Fortum has commissioned solar projects aggregating 85 MW and has
another 100 MW under development.