The Central Electricity Regulatory Commission (CERC) has approved tariffs for 480 MW of solar projects discovered by the Solar Energy Corporation of India (SECI) in its auction for 1.2 GW tender (Tranche-V).
In its order, the Commission approved tariffs of ₹2.53 (~$0.034)/kWh and ₹2.65 (~$0.035)/kWh for 150 MW and 330 MW of projects quoted by GRT Jewellers India (GRT) and Softbank Energy (SB Energy), respectively. It also directed the contracting parties to mutually agree upon a trading margin of ₹0.07 (~$0.0009)/kWh.
In August 2019, Mercom reported that Softbank Energy and GRT Jewellers India were allocated capacities totaling 480 MW in the auction held by SECI for its tender for 1.2 GW of solar projects.
Previously, Mercom reported that the tender was left undersubscribed by 50%, receiving bids for only 600 MW of solar capacity. The tender was issued on June 28, 2019, with a bid submission deadline of July 31, 2019. The upper tariff ceiling was set at ₹2.65 (~$0.035)/kWh for this tender. The projects were slated to be developed anywhere in India.
As the tender was undersubscribed, only 80% of the bid capacity could be awarded in line with the tender condition. Therefore, only a capacity of 480 MW was awarded out of the 1.2 GW tendered capacity.
Meanwhile, SECI’s recent auction saw a record-low bid of ₹2.36 (~$0.0313)/kWh. The auction was conducted for 2 GW of the interstate transmission system connected solar projects (Tranche IX). This is about 3.3% lower than the previous lowest quoted tariff of ₹2.44 (~$0.032)/kWh. ACME had quoted a tariff of ₹2.44 (~$0.032)/kWh in two of SECI’s auctions; one for 3 GW and another for 2 GW of ISTS-connected solar projects held in July 2018. SECI had issued a request for selection for the projects in March 2020.
According to Mercom India Research, SECI has so far tendered 16.7 GW of ISTS solar projects under tranche I to X; and auctioned around 8.84 GW under tranche I to Tranche VIII.
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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.