SECI’s 250 MW Solar Auction in Maharashtra Sees Lowest Tariff Rise to ₹2.87/kWh

The Global Energy Transfer Feed-in Tariffs (GET FiT), Zambia Secretariat, has awarded 120 MW of solar photovoltaic (PV) projects under round one of GET FiT Zambia 100 MW solar PV tender. The GET FiT tender had an initial plan to award 100 MW, but due to the favorable results, the Government of the Republic of Zambia and GET FiT Investment Committee decided to allocate an additional 20 MW.

Six projects of 20 MW were awarded totaling 120 MW. The lowest winning bid was quoted $0.03999/kWh, and the weighted average of all six successful bids was $0.0441/kWh. This is the largest single solar PV tender implemented in sub-Saharan Africa to date outside of South Africa. This is also the first time a tariff below $0.04/kWh is discovered through a public tender in sub-Saharan Africa.

GET FiT Zambia awarded two projects of 20 MW each to joint venture Building Energy & Pele Energy (Bulemu East & West) at a tariff of $0.03999/kWh. Two projects of 20 MW each were awarded to joint venture Globeleq & Aurora Power Solutions (Aurora Solar One & Two) at a tariff of $0.0452/kWh.

GET FiT awarded two projects of 20 MW each to a joint venture of InnoVent & CEC (Garneton North & South Solar) at a tariff of $0.0480/kWh.

In addition to the winning bidders, two consortiums have been awarded “Reserve” status. GET FiT Zambia reserves the right to call upon these consortia, each of which has also submitted bids for a total of 40 MW each, if any of the awarded consortia are unable to either meet pre-established timeframes or meet compliance requirements.

Ryan Anderson, the Tender Agent Team Leader, noted, “it is important to recognize that these tariff results represent a truly competitive outcome. Not only were developers required to find and acquire their own suitable sites and pay for shallow grid connection but GET FiT Zambia has offered no form of grant financing, nor has it arranged for concessional finance.”

Marco Freitag of KFW Development Bank stated, “what has made this such a competitive outcome is the bankable standardized transaction agreements, the effective tender implementation and the steadfast commitment of the Government of Zambia and ZESCO.”

Marco emphasized, “The tender results are extraordinarily favorable for the Zambian people and ZESCO, as they contribute to the ultimate goal of least cost power procurement.”

Winners will sign a 25-year power purchase agreement (PPA) with ZESCO to deliver low-cost clean energy to the Zambian people. GET FiT had tendered the capacity in 2018.

Image credit: Sterling and Wilson