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Andhra’s solar auction for 6.4 GW of solar projects spread out over ten separate locations has resulted in tariffs ranging between ₹2.47 (~$0.033)/kWh to ₹2.58 (~$0.035)/kWh, according to an auction winner who confirmed the results.

This is the lowest tariff in a solar auction in the state to date. The previous low tariff discovered in the state auction was ₹2.70 (~$0.039)/kWh in 2018.

In the solar auction conducted by Andhra Pradesh Green Energy Corporation (APGECL), Torrent Power emerged as the lowest bidder (L1), quoting a tariff of ₹2.47 (~$0.033)/kWh for 300 MW of project to be developed at the Kambadur Ultra Mega Solar Park located in Anantapuram district.

NTPC won the bid to develop 600 MW quoting a tariff of ₹2.48 (~$0.034)/kWh at Chakrayapet Ultra Mega Solar Park in YSR Kadapa district.


Shirdi Sai Electricals quoted a tariff of ₹2.48 (~$0.034)/kWh to develop 1,800 MW of projects in four separate locations – Uruchintala Ultra Mega Solar Park and Kambadur Ultra Mega Solar Park in  Anantapuram district, and Kolimigundla Ultra Mega Solar Park in Kurnool district. The company quoted 2.49 (~$0.035)/kWh to develop 400 MW projects at Thondur Ultra Mega Solar Park in the YSR Kadapa district.

Adani Renewable won 3,000 MW of solar projects to be developed at five separate solar parks. The company quoted ₹2.49 (~$0.035)/kWh for developing four projects totaling 2,400 MW at M.Kambaladinne Ultra Mega Solar Park and Pendlimarri Ultra Mega Solar Park, both in YSR Kadapa district, Rudrasamudram Ultra Mega Solar Park in Prakasam district, and Mudigubba Ultra Mega Solar Park in Anantapuram district. The company quoted a tariff of ₹2.58 (~$0.036)/kWh to develop 600 MW of projects at the CS Puram Ultra Mega Solar Park in the Prakasam district.

HES Infra won 600 MW of solar projects to be developed at Kambadur Ultra Mega Solar Park in Anantapuram District, and the company quoted a tariff of ₹2.49 (~$0.039)/kWh.

The Letter of Award (LoA) will be issued based on the outcome of the writ petition filed by Tata Power Renewable Energy on January 6, 2021, in the High Court of Andhra Pradesh, for stopping the further process of this 6.4 GW auction.

In reply to the petition, the High Court of Andhra Pradesh directed APGECL to not enter into any agreements for its tender for 6.4 GW of solar power projects until further notice.

Later the High Court of Andhra Pradesh upheld Tata Power Renewable Energy’s contention that APGECL’s RfS and PPA for 6.4 GW of solar projects for farmers in the state were in gross violation of the provisions of the law.

APGECL - Auction for 6,400 MW of Solar Power Project to Supply Free Power to Farmers in the State

Background: 

APGECL had floated the tender in the first week of December last year to set up 6.4 GW of solar projects at ten locations in the state to supply power to agricultural consumers in the state. The tender was oversubscribed by 8.5 GW. The state agency received bids for 14.9 GW of solar projects from five bidders – Shirdi Sai Electricals, Adani Group, Torrent Power, NTPC, and HES-SSISPL.

The state government had planned to install 10 GW to ensure nine hours of daytime free power supply to the agriculture sector on a sustainable basis.

To make the tender attractive, the state government had exempted stamp duty. It reduced the registration fee for lands to develop solar projects to ₹1 ($0.01) on every ₹1,000 ($13.37) of the value of the document on land deeds entered by APGECL with landowners.

According to Mercom’s India Solar Project Tracker, Andhra Pradesh currently has 3.7 GW of large-scale solar projects in operation, while around 1.3 GW of projects is under different stages of development.