Lowest Tariff of ₹2.55/kWh Wins SECI’s 1.2 GW ISTS Solar Auction
Winners of this auction are ReNew Power, Azure Power, Eden Renewables, and SBSR Power Cleantech Eleven
ReNew Power has emerged as the L1 bidder by quoting the lowest tariff of ₹2.55 (~$0.035)/kWh to develop 300 MW in the recent auction conducted by the Solar Energy Corporation of India (SECI) for 1,200 MW of ISTS-connected Solar projects.
Other winners in this auction included Azure Power, Eden Renewables, and SBSR Power Cleantech Eleven Private Limited (SoftBank).
Azure Power won 300 MW by quoting the second lowest (L2) tariff of ₹2.58 (~$0.036)/kWh whereas Eden Renewables has quoted the tariff of ₹2.60 (~$0.036)/kWh to win the same capacity.
SBSR Power Cleantech Eleven Private Limited quoted a tariff of ₹2.61 (~$0.036)/kWh) to develop 600 MW but will be awarded only 300 MW due to bucket filling method applied to the awarded capacities in reverse auctions.
“We will wait for some more updates to come from SECI as of now to comment. However, we bid for 300 MW and got the same”, one of the winners of this auction informed Mercom.
The upper tariff ceiling was ₹2.65 (~$0.038)/kWh for this auction.
In January 2019, Mercom has reported that a single bidder must bid for a minimum of 50 MW and a maximum of 600 MW solar capacity. The projects will be developed in multiple blocks of 20 MW. SECI will enter into a power purchase agreement for a period of 25 years with the successful bidders.
Last week, Paryapt Solar, a special purpose vehicle by UPC Solar, has quoted the same L1 tariff of ₹2.55 (~$0.035)/kWh to win 50 MW in the auction conducted by the Gujarat Urja Vikas Nigam Limited (GUVNL) for the purchase of power from 500 MW grid-connected solar photovoltaic power projects (Phase IV).
This month, four wind project developers- Ostro Energy (300 MW), Adani Renewables (250 MW), Srijan Energy Systems (150 MW), and Powerica Limited (50.60 MW), have quoted the lowest tariff of ₹2.82 (~$0.040)/kWh in the auction held by SECI for 1,200 MW of ISTS-connected wind projects issued under Tranche-VI.
In comparison, ₹2.44 (~$0.0355)/kWh was quoted as L1 by ACME Solar to develop 600 MW capacity out of the SECI’s 3 GW ISTS-II auction held in July 2018. Later, SECI canceled the other 2.4 GW capacity due to high tariff.
Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer