SoftBank, O2 Power, EDEN Renewables, Axis Energy, Avaada Win NHPC’s 2 GW Solar Auction
Four out of the five winners quoted the lowest tariff of ₹2.55 (~$0.0335)/kWh
SoftBank, Axis Energy Ventures India Private Limited, O2 Power, EDEN Renewables, and Avaada Energy, were the winners in the 2 GW interstate transmission system (ISTS) connected solar projects auctioned by the National Hydroelectric Power Corporation (NHPC).
Softbank, Axis Energy, O2 Power, and EDEN quoted the lowest (L1) tariff of ₹2.55 (~$0.0335)/kWh in the auction. They were awarded 600 MW, 400 MW, 380 MW, and 300 MW, respectively.
Avaada Energy, who had placed bids for 600 MW, was awarded 320 MW at a tariff of ₹2.56 (~$0.0337)/kWh.
Mercom had previously reported that the tender issued in September 2019 was oversubscribed and had received bids from nine developers for a total of 3.78 GW. ReNew Power, SoftBank, and Avaada Renewables had placed bids for 600 MW each, Tata Power for 300 MW, O2 Power for 380 MW, Axis Energy for 400 MW, while AMP Solar, NTPC, and EDEN each bid for 300 MW each.
In January 2020, the NHPC revised the minimum tariff payable to the project to ₹2.78 (~$0.036)/kWh from ₹2.65 (~$0.035)/kWh. Initially, the NHPC had set a tariff ceiling of ₹2.95 (~$0.039)/kWh. But later, in October 2019, the ceiling tariff was revised to ₹2.65 (~$0.035)/kWh.
It also extended the bid submission deadline of its tender for 2 GW of solar projects from October 17, 2019, to January 10, 2020.
The tender stated that the projects could be set up anywhere in India. There is no maximum limit of projects a developer can bid for. Projects that have been commissioned, are under construction or projects which are not yet commissioned, cannot be considered under this tender.
Further, enhancement and augmentation of commissioned projects, irrespective of their capacities, would not be allowed under this project. Modules for projects under this tender can be imported (open category).
In September 2019, the government-owned hydropower generator had issued this tender inviting bids for 2,000 MW of solar power. The projects were expected to be connected to the ISTS network. Modules for projects under this tender were allowed to be imported under the open category.
Nithin Thomas is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor’s Degree in Commerce from Loyola College, Chennai. More articles from Nithin.