Solar Project Tenders and Auctions Witness a Steady Decline in Q4 2022

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Solar tenders floated by various agencies in India declined 32% quarter-over-quarter (QoQ) to 9.7 GW in the fourth quarter (Q4) of 2022 from 14 GW, according to Mercom India Research.

Tender announcements were, however, up by 56% year-over-year (YoY).

The QoQ decline in the overall tendered capacity can be attributed to the low number of RTC tenders of 1.5 GW capacity issued in Q4 compared to the 3.25 GW issued in Q3 2022.

The quarter also witnessed a 50% QoQ dip in solar auctions, with 1.9 GW of capacity auctioned during the period. The capacity auctioned dropped 56% over the same period last year.

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

Solar Tenders and Auctions Q4 2022 graph

 

During the quarter, Solar Energy Corporation of India’s (SECI) 2.25 GW RTC tender issued in September was canceled due to a poor response contributing to the reduced auction numbers.

Top tender issuing agencies in Q4 2022

Maharashtra State Electricity Distribution Company (MSEDCL) continued to be the top agency accounting for 21% of the total tendered capacity during the quarter.

REC Power Development and Consultancy (RECPDCL), a wholly owned subsidiary of REC Limited, was the second leading agency accounting for 18%.

Adani Electricity Mumbai (AEML) tendered 15% of the capacity and SECI 12%. Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL) accounted for 8% of the total capacity tendered during the quarter.

Major Solar Tenders in Q4 2022

AEML’s tender to procure 1,500 MW (750 MW with an additional 750 MW under the greenshoe option) of RTC power from grid-connected renewable energy projects complemented with firm power from any other source topped the list for maximum tendered capacity.

RECPDCL floated a tender to set up 1,250 MW of interstate transmission system (ISTS)-connected solar power projects (Tranche I) across India.

SECI’s tender for setting up 1,200 MW of ISTS-connected wind-solar hybrid power projects (Tranche-VI) with energy storage and assured peak power supply across India, also made it to the top list during the quarter.

RRVUNL issued a tender during the quarter to select solar project developers to set up 810 MW of state transmission utility-connected solar power projects on a build-own-operate basis in Bikaner.

GAIL’s tender for the design, supply, construction, erection, testing, and commissioning of 600 MW (6 x 100 MW) of solar power projects at the Khavda Solar Park in the Kutch region of Gujarat was another big tender during the quarter.

Major Auctions in Q4 2022

SolarArise, SJVN Green Energy, and Tata Power Renewable Energy (TPREL) won MSEDCL’s auction for the procurement of 500 MW of power on a long-term basis from Phase IX of grid-connected intrastate solar projects.

Pennar Industries, an engineering services company, emerged as the lowest bidder and won the engineering procurement and construction order from NTPC Renewable Energy for its  500 MW solar power project at Bhadla in Rajasthan.

TPREL won the Tata Power Delhi Distribution’s auction for 255 MW wind-solar hybrid power projects by quoting a price of ₹3 (~$0.037)/kWh.

NTPC Renewable Energy, SJVN Green Energy, and Hinduja Renewables were declared winners in Rewa Ultra Mega Solar’s auction for the 300 MW floating solar park (Phase II) at the Omkareshwar reservoir in Madhya Pradesh. The capacity won by the bidders totaled 253 MW.

Ayana Renewables and NTPC Renewable Energy won MSEDCL’s auction to procure 250 MW of flexible and schedulable power from grid-connected renewable energy projects with an energy storage facility on a long-term basis.

SJVN bagged the Maharashtra State Power Generation Company’s auction to set up a 105 MW grid-connected floating solar project at Erai Dam Solar Park in the Chandrapur district of Maharashtra by quoting a tariff of ₹3.93 (~$0.048)/kWh.

Mercom recently reported on the importance of a pre-determined renewable tender trajectory in mitigating project risks and helping developers plan finances and supply chain issues efficiently.

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