India Recorded Strong Solar Tender and Auction Activity in December
January 4, 2018
After a period of lull, the month of December 2017 witnessed a surge in tendering and auction activity in solar sector in the country. Over 2,500 MW of solar was tendered and over 750 MW was auctioned in December alone, according to data from Mercom India Solar Tender Tracker.
The capacity tendered in the last month of 2017 witnessed an eightfold increase when compared with November, in which only 300 MW was tendered. Auction activity also witnessed an exponential rise in the last month when compared to just 5 MW auctioned in the preceding month.
Here is a summary of the tender and auction activity recorded in the month of December:
The Maharashtra State Electricity Distribution Company Limited (MSEDCL) tendered 1,000 MW of grid-connected solar photovoltaic (PV) projects to meet its Renewable Purchase Obligation (RPO).
The Maharashtra State Power Generation Company (MAHAGENCO) issued three separate tenders for a total of 300 MW of grid-connected solar capacity. The capacity will be developed on a Public Private Partnership (PPP) basis to supply power to agricultural (AG) feeders under the Phase-II program.
The Karnataka Renewable Energy Development Limited (KREDL) issued a tender for allotment of 860 MW (20 MW x 43 Taluks) grid-connected solar projects in 43 selected taluks in Karnataka.Major Auctions
The Solar Energy Corporation of India (SECI) auctioned 500 MW of solar in Bhadla Phase-III Solar Park auction. Hero Future Energies won 300 MW at a winning bid of ₹2.47 (~$0.0380)/kWh followed by SoftBank Group which won 200 MW at the second lowest bid of ₹2.48 (~$0.0382)/kWh.
The SECI also auctioned 250 MW of solar in Bhadla Phase-IV Solar Park auction. Azure Power won the bid to develop 200 MW by quoting the lowest tariff of ₹2.48 (~$0.0388)/kWh. ReNew Power won the remaining 50 MW with a bid of ₹2.49(~$0.0389)/kWh.
Tender and auction activity is expected to increase in the coming months. In November 2017, Mercom reported that according to the trajectory issued by the Ministry of New and Renewable Energy (MNRE), 3 GW of solar was to be tendered in December 2017. When compared with the preceding quarters wherein tender and auction activity had reached a new low, December was a big turnaround.
The MNRE trajectory also shows that 3 GW would be tendered in January 2018 if the government agencies stick to their set targets.
Other than the SECI, various other central and state agencies have tendered small scale solar projects which can be found in Mercom’s India Solar Tender Tracker.
The SECI recently issued Expression of Interest (EoI) to develop 10 GW of floating solar projects and 20 GW of solar manufacturing. The MNRE has also issued norms regarding the appointment of Distribution Companies (DISCOMs) as implementing agencies to speed up rooftop solar deployment in the country.
The developments towards the end of 2017 clearly point towards heightened activity in 2018 after a period of lull in the Indian solar industry.
For a complete list of tenders and auctions – ask about our India Solar Tender Tracker. firstname.lastname@example.org or call +91.80.2356.0436.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.