L1 Tariff of ₹2.91/kWh Quoted in 550 MW KREDL Grid-Connected Solar Project Auction

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

These solar projects are to be developed at Karnataka’s Pavagada Solar Park, located in the state’s Tumkur district. According to Mercom’s India Solar Project Tracker, 600 MW was auctioned in the year 2016 under the first phase of Pavagada Solar Park’s development. The capacity was grid-synchronized in January 2018.

Lowest Tariff of ₹2.91/kWh Quoted in KREDL’s 550 MW Pavagada Solar Auction

Indian renewable energy project developer ReNew Power has quoted a low tariff of ₹2.91 (~$0.044)/kWh. A ReNew Power executive confirmed to Mercom that the company will develop 300 MW at Pavagada Solar Park at a tariff of ₹2.91 (~$0.044)/kWh.

The L1 tariff quoted in this auction is ₹1.88 (~$0.028)/kWh lower than the L1 tariff of ₹4.79 (~$0.073)/kWh quoted in the first Pavagada Solar Park auction.

Avaada Power quoted a tariff of ₹2.92 (~$0.044)/kWh to develop 150 MW while Azure Power quoted a tariff of ₹2.93 (~$0.045)/kWh to develop 100 MW of solar projects. In a press release issued recently, Azure Power also confirmed the capacity it has won at Pavagada Solar Park.

Lowest Tariff of ₹2.91/kWh Quoted in KREDL’s 550 MW Pavagada Solar Auction

A KREDL official told Mercom that the final tariffs were agreed upon after a final round of deliberation between KREDL and the project developers. In a previous conversation with Mercom, the official had also confirmed that the remaining capacity (650 MW) will soon be retendered.

Due to uncertainties surrounding the solar sector in India, the KREDL was not able to auction the total tendered capacity of 1,200 MW.

KREDL had initially tendered the capacity in January 2018. Due to the prevailing ambiguities, KREDL had later extended the bid submission deadline for its 1,200 MW grid-connected solar PV project tender.