Over 30 GW of Solar Tendered in the First Half of 2018 in India
The month of June saw over 7 GW of solar capacity tendered with less than a gigawatt auctioned during the month
Over 30 GW of solar projects have been tendered in the first half of calendar year. Auction activity lagged tender announcements in the first half by a large margin. Auctions totaled approximately 15 percent of tenders announced in the first six months of calendar year 2018.
Approximately 7 GW of solar photovoltaic (PV) capacity was tendered in India in June 2018, while less than a gigawatt of solar PV projects were auctioned in India, according to Mercom’s India Solar Tender Tracker. Tendering activity slowed in June 2018 compared to May when over 10 GW of solar PV tendered.
According to the tender trajectory issued by the Ministry of New and Renewable Energy (MNRE), 30 GW is expected to be tendered in FY 2018-19. After June 2018, only 15 GW remains to be tendered out of the targeted capacity.
“Auctions are when bidding occurs, and companies win projects, sign PPAs, raise funding, build projects and supply power. Tenders announcements by themselves don’t mean a whole lot as many tend to get postponed multiple times and quite a few of them also get cancelled,” said Raj Prabhu, CEO of Mercom Capital Group.
Major Tenders in June
The Solar Energy Corporation of India (SECI) tendered 3 GW of interstate transmission system (ISTS)-connected solar PV projects to be developed across the country.
SECI also issued a new tender for 2.5 GW of ISTS-connected wind and solar hybrid power projects to be developed across the country.
Karnataka Renewable Energy Development Ltd (KREDL) awarded 250 MW of solar projects each to Fortum Corporation and Tata Power Renewable Energy Ltd (TPREL) which are to be developed in Pavagada solar park, located in state’s Tumkur district.
ACME Solar Holdings, an independent power producer (IPP) won a SECI auction to develop 75 MW of solar projects in Parasan Solar Park, located in the state of Uttar Pradesh by quoting the lowest (L1) tariff of ₹3.32 (~$0.049)/ kWh.