According to the Q4 & Annual, 2020 India Solar Market Quarterly Update, in 2020, about 32.5 GW of tenders were announced by various agencies, and over 22 GW of projects were auctioned. There was only a marginal decrease of 7% in tender activity despite the pandemic in 2020. In 2019, 34.8 GW of tenders were issued. However, auction activity was significantly higher with 22.04 GW, 39% more than the 15.8 GW auctioned in 2019.
India has set ambitious renewable energy targets but meeting them will not be easy. Given the rough ride, solar project developers have to endure from the auction process to signing the power purchase and power sale agreement.
One of the biggest challenges developers face in India is the long delays in the signing of the power sale agreements (PSA) between the power distribution companies (DISCOMs) and the Solar Energy Corporation of India (SECI).
Even though India can be a global leader in the solar arena, several issues hinder its growth path. Are extremely low bids a positive development? If so, why do auctions get canceled every time there is a record low bid? How do we avoid this cycle of low tariffs and canceled auctions?
On April 8-9, Mercom will host the ‘Mercom India Solar Summit 2021’ with panelists discussing developer expectations and the challenges before implementing agencies. The session ‘Tenders and Auctions – From Pipeline to PPAs, How We Get There’ will be held on April 9, from 10 AM. To register, you can click here.
The panel will feature S.S. Mishra, General Manager, NTPC; Ashish Tiwari, Managing Director, Vena Energy; Lakshminarayanan, DGM Ayana Renewable Power; and Sanjay Sharma, General Manager at SECI.
The panel will focus on the robust pipeline of tenders and auctions and what can be expected in the foreseeable future. The discussion will shed light on what is expected of the implementing agencies to ensure that tenders are structured well to receive a good response.
To register, you can click here.
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.