July 5, 2018 Read More →

Solar bids hit new record low in India

Clean Technica:

Two of India’s leading solar power developers have managed to win possibly the largest capacities ever awarded in a single tender in the country.

Acme Solar and Azure Power managed to secure the rights to develop 600 megawatts of capacity each in the largest solar power tender issued by the Solar Energy Corporation of India to date. The tender is jointly the largest tender issued in the country ever. Tenders with 2 gigawatts of capacity each were issued by the states of Jharkhand and Telangana.

The tender was issued in January this year and attracted bids worth 2.95 gigawatts in the final round of auction from eight developers. Acme Solar and Azure Power each placed successful bids to develop 600 megawatts of capacity. While Acme Solar placed the lowest-bid of Rs 2.44/kWh (3.55¢/kWh), Azure Power secured the capacity at Rs 2.53/kWh (3.69¢/kWh).

The bid of Rs 2.44/kWh (3.55¢/kWh) is jointly the lowest-ever in Indian solar power markets.

Other successful bidders include Shapoorji Pallonji (250 megawatts), Hero Future Energies (250 megawatts), and Mahindra Susten (250 megawatts). Adani Green Energy also placed a bid for 500 megawatts, but managed to secure only 50 megawatts due to over-subscription of the tender.

The reasons for such low tariff bids are multi-fold. One, the developers are free to set up projects wherever they want, and the capacity on offer is very large. Second, the power purchase agreements will be signed with SECI—a government-owned company—which represents very low risk. Third, no charges for transmission of solar power across different states.

More: India’s largest solar tender yields lowest tariff ever

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