Solar tariffs hovered around the ₹3 (0.0462)/kWh mark in the latest 500 MW grid-connected solar photovoltaic (PV) auction held by Gujarat Urja Vikas Nigam Limited (GUVNL).

GUVNL had tendered the capacity in February 2018.

Kalthia Engineering and Construction emerged as the lowest (L1) bidder by quoting a tariff of ₹2.98 (~$0.046)/kWh to develop 50 MW of grid-connected solar PV projects. The L1 tariff quoted in this GUVNL auction is ₹0.33 (~$0.005)/kWh higher than the L1 tariff of ₹2.65 (~$0.0413)/kWh quoted by GRT Jewellers India Private Limited in the previous 500 MW auction held by GUVNL.

Gujarat State Electricity Corporation Limited (GSECL) quoted a tariff of ₹3 (~$0.0462)/kWh to develop 150 MW, ACME Solar quoted ₹3.06 (~$0.047)/kWh to develop 100 MW and Azure Power also quoted ₹3.06 (~$0.047)/kWh to develop 250 MW.

Mercom previously reported that this tender had been oversubscribed by over three times. More than 10 bidders had submitted their technical bids, but only eight participated in the financial bidding.

When contacted, Mercom’s source at GUVNL said, “Kalthia Engineering will develop 50 MW, GSECL 150 MW, ACME 100 MW and Azure Power will develop 200 MW.”

When asked about the greenshoe option, the source chose not to provide all the details now.

In the recently concluded auction to develop 550 MW of grid-connected solar projects which was conducted by Karnataka Renewable Energy Development Limited (KREDL), the lowest (L1) tariff quoted stood at ₹2.91 (~$0.044)/kWh.

Even in the taluk-wise auction conducted by KREDL in February 2018, the lower limit of the quoted tariff was ₹2.94 (~$0.045)/kWh and the highest quoted tariff stood at ₹3.54 (~$0.056)/kWh.

According to Mercom’s 2017 Q4 and Annual India Solar Market Update, the average selling price (ASP) of Chinese modules rose to $0.36 (~₹23.45)/W in Q4 2017 from $0.35 (~₹22.80)/W in Q3 2017, an increase of four percent quarter-over-quarter.

Image credit: By TrickyH – Own work, (CC BY-SA 4.0), via Wikimedia Commons