Solar Tender and Auction Activity in India Dropped Significantly in July 2017
August 10, 2017
Solar tenders and auctions in India slowed down substantially in July 2017. Uncertainty surrounding the applicable GST rates for solar, DISCOMs seeking lower tariffs after the Bhadla record-low bid, and the anti-dumping investigation initiated against solar imports from China, Taiwan, and Malaysia are behind the recent slowdown.
In July, 633 MW of solar was tendered and 554 MW of solar was auctioned, compared to June 2017, in which 1,360 MW of solar projects were tendered and 1.5 GW were auctioned.
Major Solar Tenders
Energy Efficiency Services Limited (EESL) tendered 200 MW of solar to be developed near pooling substations across the state of Maharashtra.
Karnataka Renewable Energy Development Limited (KREDL) tendered 200 MW of solar to be developed at Pavagada Solar Park.
Maharashtra State Power Generation Co. Ltd. (MAHAGENCO) tendered 150 MW of solar to be developed across Maharashtra.
Also, NLC India has tendered a solar EPC contract for 709 MW to be developed in the state of Tamil Nadu. NLC India won a bid to develop 709 MW as part of the 1,500 MW tendered by TANGEDCO.
Major Solar Auctions
Rs.2.20 (~$0.034)/kWh is the lowest quoted tariff to develop a solar rooftop project under the RESCO model. Mundra Solar PV quoted the tariff to set up a solar rooftop project in Andaman & Nicobar in response to the Solar Energy Corporation of India’s (SECI) 500 MW tender to set up rooftop solar projects across various states in India.
The tariffs quoted ranged between a high of Rs.4.59 (~$0.071)/kWh quoted in Bihar and a low of Rs.2.20 (~$0.034)/kWh quoted in Andaman & Nicobar. The SECI has published a tentative list of the lowest tariffs for each state.
Vikram Solar was awarded 50 MW solar project under the DCR category from THDCIL.
Sangam Advisors Limited will develop two 2 MW grid-connected solar projects for MAHAGENCO.
The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) is set to sign power purchase agreements (PPAs) with successful bidders in the previously conducted 1,500 MW solar auction at a rate of Rs.3.47 (~$0.054)/kWh.
A TANGEDCO official stated, “All the bidders are willing to sign the PPA at Rs.3.47 (~$0.054)/kWh, the lowest price quoted in the 1,500 MW tender.” After being asked about the expected date of PPA signing, the TANGEDCO official said, “We are awaiting TNERC’s approval. Once the TNERC gives a go ahead, the PPAs will be signed immediately.”
Mercom recently reported that the SECI has cancelled solar tenders aggregating 950 MW tendered in the Kadapa and Pavagada Solar Parks under JNNSM Phase-II, Batch IV.
In another recent update from Mercom, NTPC is on the lookout for an off-taker to procure solar power from the 250MW Kadapa Solar Park in Andhra Pradesh.