Uttar Pradesh’s 500 MW Solar Auction Sees Lowest Tariff of ₹3.17/kWh
Maheshwari Mining and NTPC Limited (RE) quoted the lowest tariff of ₹3.17/kWh
Solar tariffs quoted by project developers have remained firmly above the ₹3 (~$0.040)/kWh mark in Uttar Pradesh. The Lowest (L1) tariff of ₹3.17 (~$0.043)/kWh was quoted in the recent solar auction held by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) for 500 MW of grid-connected solar projects.
A UPNEDA official confirmed the culmination of the auction to Mercom adding that Maheshwari Mining and Energy and NTPC Limited (RE) quoted the lowest tariff of ₹3.17 (~$0.043)/kWh to develop 20 MW and 140 MW respectively. NTPC Limited also quoted ₹3.21 (~$0.043)/kWh to win another 20 MW.
Adani was another large winner in the auction, winning two bids for 50 MW each. Adani quoted ₹3.19 (~$0.0429)/kWh to develop 50 MW and also quoted ₹3.22 (~$0.0432)/kWh to develop another 50 MW of solar PV capacity.
Sukhbir Agro quoted ₹3.20 (~$0.0431)/kWh to develop 50 MW, SolarArise quoted ₹3.21 (~$0.0432)/kWh to develop 50 MW and EDEN Renewable also quoted ₹3.21 (~$0.0432)/kWh to develop 50 MW.
One of the largest winners at the auction said that the move by UPNEDA to set a safeguard duty offset resulted in good participation and added that these rates are really good considering the low capacity utilization factor (CUF) in Uttar Pradesh which is at least 20 percent lower than that in Rajasthan and other sunny states.
The Uttar Pradesh Electricity Regulatory Commission (UPERC) recently approved a request for the procurement (RfP) and a power purchase agreement (PPA) for 500 MW of grid-connected solar photovoltaic (PV) projects put forth by the UPNEDA.
UPNEDA had sought approval of ceiling tariff of ₹3.25 (~$0.044)/kWh for the tender along with the revised RfP and PPA. Upper tariff ceiling was set to be ₹3.25 (~$0.044)/kWh if safeguard duty is included, and if not included, the tariff ceiling will be ₹3.10 (~$0.0424)/kWh.
UPNEDA had retendered 500 MW of grid-connected solar PV capacity to be developed across the state in July 2018, after the annulment of 1 GW auction in which tariffs quoted had gone north of ₹3.40 (~$0.0457)/kWh.
Speaking to Mercom, another government official said, “The rates are good and have been arrived at keeping the upper ceiling tariff in mind. The LoAs will be distributed soon.”
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.