More than 3 GW of solar projects were tendered in the month of October, which is more than double compared to September, according to Mercom’s India Solar Tender Tracker. This is the highest capacity tendered in the last three months.
Solar project auction activity saw an uptick with approximately 750 MWs auctioned in October, compared to around 550 MW auctioned in September.
The overall improvement in the tender and auction activities may be attributed to the clarity on the safeguard duty after the Supreme Court allowed the government to levy 25 percent safeguard duty on solar imports from China and Malaysia.
According to the tender trajectory issued by the Ministry of New and Renewable Energy (MNRE), approximately 30 GW is expected to be tendered in FY 2018-19. So far, 25 GW have already been tendered. This leaves only 5 GW to be tendered in the coming months.
Major Tenders in October
The Gujarat Urja Vikas Nigam Limited (GUVNL) tendered 700 MW of grid-connected solar photovoltaic (PV) power projects to be set up under Phase III of Raghanesda Solar Park located in the state. The projects will be developed under build own operate basis. The projects will be developed on three plots. The bid-submission deadline is November 15, 2018.
Rewa Ultra Mega Solar Limited (RUMS) issued a tender for a total of 1,500 MW of grid-connected solar PV projects which will be developed across three solar parks in the state of Madhya Pradesh. The bid-submission deadline is December 10, 2018.
The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) invited bids for 550 MW of grid connected solar PV power projects through a tariff based competitive bidding process. The last date for bid submission is November 14, 2018.
Major Auctions in October
Maheshwari Mining and NTPC Limited (RE) quoted the lowest tariff of ₹3.17 (~$0.043)/kWh in the solar auction held by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) for 500 MW of grid-connected solar projects.
Giriraj Renewables won the auction to develop 150 MW of grid-connected solar PV projects in the Pavagada Solar Park in Tumkur district of Karnataka. Karnataka Renewable Energy Development Limited (KREDL) had tendered the capacity in July 2018.
Asian Fab Tec won the bid to develop 20 MW of solar projects in five districts of Karnataka by quoting a tariff of ₹2.89 (~$0.039)/kWh for each taluk. The capacity awarded was part of the 200 MW solar tender for 10 talukas issued by KREDL.
The lowest tariff dropped to ₹1.38/kWh (~$0.0186)/kWh in Madhya Pradesh Urja Vikas Nigam Limited’s (MPUVNL) 8.6 MW auction of grid-connected rooftop solar under RESCO II model. The projects will be developed at more than 13 locations across the state. The first-year tariffs quoted in the auction are set to escalate by three percent per year over a period of 25 years.