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Solarpack announces the award of a long-term power purchase agreement (PPA) in India. The award, which is the result of the competitive process launched by the Solar Energy Corporation of India (“SECI”), the company owned by the Ministry of New and Renewable Energy of the Federal Government of India established to facilitate the implementation of the National Solar Mission, will imply the signing in the coming months of a 25 year long PPA for its project, which is located in the state of Rajasthan and which will achieve commissioning during 2022. The project will represent a total investment of approx. € 129 million. SECI is considered the credit worthiest renewable energy buyer in India, with a long-term AA+ ICRA rating.
Solarpack began its activity in India in 2015, when it started the development of a portfolio of projects that resulted in the win of its first PPAs in India for a 104 MW project. The Company has presented today an offer for the sale of energy of its 396 MW project, winning 15% of the total bid at a sale price of 2.36 INR/kWh (equivalent to approx. € 28/MWh). Around 12 energy sale bids were submitted to this bidding process, out of which 7 have been finally awarded. The PPA assures energy sales for Solarpack exceeding INR 42,400 million (equivalent to approx. € 501 million) during the entire life of the contract.
This PPA award reaffirms the convenience of Solarpack’s strategy of having a diversified international presence with a focus on the fastest growing regions for solar PV, keeping a fundamental core of assets exposed to contracted and hard currency-low inflation revenues.