Solar tenders floated by various agencies in India rose 5% quarter-over-quarter (QoQ) to over 14 GW in the second quarter (Q2) of 2023, according to Mercom India Research.

Tender announcements were up 59% year-over-year (YoY).

The quarter saw a 722% QoQ increase in solar auctions, with almost 7 GW of solar projects auctioned. The capacity auctioned increased by 63% compared to the same period last year.

The high-capacity projects tendered by Solar Energy Corporation of India (SECI), REMCL, REC Power Development and Consultancy (RECPDCL), and Gujarat Urja Vikas Nigam (GUVNL) in 2022 and awaiting auction contributed ~68% to the total auctioned capacity in Q2 2023.

The tender and auction activity comprises pure solar, solar-wind hybrid, and round-the-clock tenders (RTC), including solar.

In terms of tenders announced for 500 MW and above capacity, NHPC led the way with 3.43 GW of tendered capacity, followed by NTPC and SJVN with 3.27 GW and 2.04 GW of tendered capacity.

Top Tender Issuing Agencies in Q2 2023

NHPC was the top agency accounting for 23.7% of the total capacity issued in Q2 2023. NTPC was in the second spot with 12.5% of the total tendered capacity during the quarter.

SJVN, the Punjab State Power Corporation (PSPCL), and SECI rounded off the top five with 10.4%, 8.3%, and 7.6%, respectively.

Major Tenders Announced in Q2 2023

NHPC invited bids to select developers for setting up 3,000 MW of interstate transmission system (ISTS)-connected solar power projects across the country.

SJVN issued a tender to select renewable developers to supply 1,500 MW of power from ISTS-connected renewable energy projects with energy storage capacities across India.

NTPC Renewable Energy, a wholly-owned subsidiary of NTPC, floated a tender for ISTS-connected energy storage projects of 9,000 MWh capacity with a minimum of 1,500 MW capacity to be installed anywhere in India.

GUVNL issued a tender for 800 MW of grid-connected solar projects (Phase XX) at the Khavda Solar Park in Gujarat with a greenshoe option of an additional capacity of 800 MW.

Major Auctions in Q2 2023

Solairedirect Energy India (ENGIE), ReNew Power Solar, and NTPC Renewable Energy won RECPDCL’s auction to develop 1,250 MW ISTS-connected solar power projects -Tranche I.

Amp Energy India, ReNew Vikram Shakti, Hero Future Energies, and ACME Cleantech Solutions won SECI’s auction for developing 1,200 MW of ISTS-connected wind-solar hybrid power projects (Tranche-VI) with energy storage and assured peak power supply across India.

Sprng Akshaya Urja (Sprng Energy), NTPC Renewable Energy, Project Nine Renewable Power (Ayana Power), and TEQ Green Power XIII (O2 Power) emerged winners in REMC’s auction to supply 1 GW of RTC power for 25 years from grid-connected renewable power projects with or without storage.

Mahindra Susten, Sunfree Energy (SAEL), Solarcraft Power India (Blupine Energy), Jakson, Shiva Corporation, Avaada Energy, and SJVN emerged winners in Rajasthan Urja Vikas Nigam’s (RUVNL) auction to supply 1 GW of power from state transmission utility (STU)-connected solar power projects in the state.

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(The article is updated with the reasons for high solar auction activity during the quarter)