The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has announced the auction results for its 500 MW solar tender.
In September 2019, the UPNEDA had issued a request for proposal for the procurement of 500 MW of power from grid-connected solar PV projects. In the tender, it was stated that the capacity of each solar power project must be a minimum of 5 MW and the maximum capacity will be 500 MW and that the successful bidder would be responsible for supplying power to the procurer for 25 years under the power purchase agreement.
The winners of the auction are NV Vogt Singapore Private Limited, Al-Jomaih-Jakson Power Private Limited, Vijay Printing Press Private Limited, and Talettutayi Solar Projects Eight Private Limited (SolarArise).
NV Vogt Singapore won a capacity of 50 MW at a tariff of ₹3.17 (~$0.044)/kWh. Jakson in consortium with Al-Jomaih won a total capacity of 100 MW at ₹3.18 (~$0.045)/kWh. Vijay Printing Press won capacity of 25 MW, while Talettutayi Solar Projects Eight Private Limited (SolarArise) won a capacity of 9 MW under the bucket filling method. Both quoted a tariff of ₹3.18 (~$0.045)/kWh.
Recently, Mercom reported that the tender was undersubscribed by 268 MW, and the tariff ceiling was fixed at ₹3.25 (~$0.046)/kWh. The non-availability of adequate evacuation facilities in the Bundelkhand region where the projects are to be developed could be a reason for the lack of interest from developers, according to a source who spoke to Mercom.
As the tender was undersubscribed, only 80% of the capacity bid for could be auctioned, which amounts to 184 MW.
In June last year, the National Thermal Power Corporation (NTPC) had emerged as the lowest bidder in the auction for 500 MW of grid-connected solar projects conducted by UPNEDA. The auction had received a poor response as bids of only 90 MW were received for the 500 MW tender and in line with the RfS and PPA regulations, only 80% of the bids could be awarded.
According to Mercom India Solar Project Tracker, Uttar Pradesh has 972 MW of large-scale solar projects in operations, and approximately 1.6 GW of projects are under development pipeline.
Image credit: EDF Renewables
Rakesh is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.