Solar Auctions Up 86%, Tenders Rise 5% YoY in Q3 2023

A total of 7 GW of solar power projects were auctioned during the quarter


Solar power project tenders floated by multiple implementing agencies in India rose 5% year-over-year (YoY) to over 13 GW during the third quarter (Q3) of the calendar year 2023, according to Mercom India Research.

Tender announcements were flat quarter-over-quarter (QoQ) from July to September. The pace of tender announcements has failed to accelerate even after the government issued the 50 GW renewable energy trajectory target for financial years 2024-28.

Solar auctions during the quarter witnessed an increase of 86% YoY, with 7 GW projects auctioned. The increase was, however, a marginal 4% compared to the previous quarter.

The tender and auction activity comprises standalone solar and solar-wind hybrid projects. For solar-wind hybrid project tenders, Mercom India Research has considered the solar capacity at a ratio of 67% of the total tendered hybrid project capacity.

Auctions by public sector undertakings Solar Corporation of India (SECI), Punjab State Power Corporation (PSPCL), and Rajasthan Urja Vikas Nigam (RUVNL) accounted for 63% of this quarter’s auction capacity.

The highest capacities bid during the quarter include SECI’s 2 GW solar auction, followed by auctions by PSPCL and RUVNL with 1.2 GW each.

India Large Scale Solar Tenders and Auctions by Quarter (MW)

In terms of high-capacity tenders issued during the quarter, MSEB Solar Agro Power (MSAPL),  a wholly-owned subsidiary of MSEB Holding Company, led the way with 2.87 GW of tendered capacity, accounting for 18.9% of the total capacity tendered during the quarter.

SECI accounted for 16.8%, and SJVN 14.03%.

PSPCL and Rewa Ultra Mega Solar (RUMSL) rounded off the top five with 9.86% and 8.9%, respectively.

Major Tenders in Q3 2023

SJVN’s bid to select developers for setting up 1,500 MW ISTS-connected wind-solar hybrid power projects.

SECI’s tender for the supply of 1,260 MW firm and dispatchable power from ISTS-connected renewable energy projects.

PFC Consulting’s tender for setting up 1,250 MW ISTS- ISTS-connected solar PV projects and PSPCL’s tender to purchase power from 1,000 MW grid-connected solar photovoltaic projects located anywhere in India.

Major Auctions in Q3 2023 

SAEL, ReNew, Eden Renewables, Jakson, Shiva Corporation, and Avaada Energy won SECI’s auction to set up 2 GW interstate transmission system-connected solar projects (Tranche XI) in India.

SJVN Green Energy, a wholly-owned subsidiary of SJVN, received a letter of intent from the PSPCL to develop 1,200 MW solar power projects.

Solarcraft Power (BluPine Energy) and ACME Solar emerged winners in RUVNL’s auction to set up 1,200 MW of solar power projects anywhere in India with a committed supply for at least six hours during the peak demand periods from an energy storage system.

KPI Green Energy, SAEL Industries, and NLC India won Gujarat Urja Vikas Nigam’s auction to develop 800 MW of grid-connected solar power projects (Phase XX) at the Khavda Solar Park in Gujarat.

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