The 200 MW grid-connected solar photovoltaic (PV) auction conducted by Grid Corporation of Odisha (GRIDCO) is in troubled waters.
Per a GRIDCO official, “The L2, L3, L4 and L5 bidders have been asked to match the lowest (L1) tariff of ₹2.79 (~$0.0406 )/kWh as the difference between the tariffs is more than ₹0.40 (~$0.0057)/kWh.”
Further elaborating, the GRIDCO official said, “We buy solar power from the Solar Energy Corporation of India (SECI) at ₹2.57 (~$0.036)/kWh, ₹2.81 (~$0.0402)/kWh. Our board is of the opinion that tariff above ₹3 (~$0.0429)/kWh mark is not financially feasible for GRIDCO. If such a tariff prevails, then GRIDCO would scrap the capacities for the other bidders.”
The GRIDCO official further informed that the L1 bidder Aditya Birla Renewables was issued a letter on August 20, 2018. So, we are confident of going ahead with this capacity. Also, this tender had a greenshoe option for 100 MW. We are confident the L1 bidder Aditya Birla will opt for that too.
Talking about the other successful bidders from the auction, the GRIDCO official said, “ACME Power has asked for some more time so that their management can recalculate and see whether they can match the L1 tariff. They recently got a project for ₹2.44 (~$0.0349)/kWh, so we have some hope from them.”
“Sukbir Agro from Punjab has also asked for some more time to arrive at a decision. The other two winners haven’t shown any interest after receiving communication from us,” added the GRIDCO official.
The capacity was tendered by GRIDCO in April 2018. The tender was oversubscribed by almost four times. Per Mercom’s India Solar Project Tracker, in the auction, Aditya Birla Renewables had quoted ₹2.79 (~$0.0406)/kWh to develop 75 MW of solar PV capacity. Sukhbir Agro bid ₹3.19 (~$0.0464)/kWh to develop 25 MW, Gupta Power quoted the same tariff to develop 20 MW. Even Eden Renewables quoted ₹3.19 (~$0.0464)/kWh to develop 50 MW. ACME Solar quoted a tariff of ₹3.20 (~$0.0466)/kWh to develop 50 MW.
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.