Lowest (L1) tariff of ₹2.71 (~$0.0401)/kWh was quoted in the auction held by Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the development of 1 GW of grid-connected solar photovoltaic (PV) projects in the state. This is the lowest solar tariff for a grid-connected solar PV project in Maharashtra.

JLTM Energy India Private Limited was the L1 bidder who quoted a tariff of ₹2.71 (~$0.0401)/kWh to develop 20 MW. In the MSEDCL auction, Mahoba Solar (UP) Private Limited (Adani) also matched the L1 tariff to develop 200 MW, an MSEDCL official told Mercom.

The MSEDCL official further added, “ReNew Power and ACME Solar Holdings quoted ₹2.72 (~$0.0402)/kWh to develop 250 MW each. Tata Power Renewable Energy Limited (TPREL) also quoted ₹2.72 (~$0.0402)/kWh to develop 150 MW. Azure Power too quoted a tariff of ₹2.72 (~$0.0402)/kWh to develop 150 MW but will be awarded 130 MW.”

Overall, the quoted tariffs ranged between a high of ₹2.76 (~$0.0408)/kWh quoted by Shapoorji & Pallonji to a low of ₹2.71 (~$0.0401)/kWh.

The MSEDCL official also said, “The clarification issued pertaining to pass through of costs in case of new duties being levied led to an upsurge in the participation from project developers. The tariffs quoted are good and it bolsters our hopes for the other solar tenders that have been issued by us (MSEDCL).”

The tariffs quoted in this auction are slightly lower than the tariffs quoted in the recently concluded NTPC’s 750 MW grid-connected solar PV auction.

As observed in a recent Mercom analysis, established players with financial backing are continuing to dominate larger auctions.

Mercom previously reported that MSEDCL’s 1 GW grid-connected solar PV tender was oversubscribed by 450 MW. MSEDCL had retendered the projects in order to meet its Renewable Purchase Obligation (RPO) in April 2018. It had initially tendered the projects in December 2017.