The Solar Energy Corporation of India (SECI) has revealed the bid winners of their 1785 MW Solar tender (Tranche IV) for Rajasthan, with a final price of Rs 2.17 – 2.18/unit. The auction was won by NTPC, Sprng Energy, UPC Renewables, Metka EGN Singapore Pte, each quoting Rs 2.17/unit, while ReNew Power and ACME Solar quoted Rs 2.18/unit.
The final list of awardees includes a mix of PSU, commercial, and international entities, with ReNew Solar Power topping the way with a capacity of 600 MW, followed by NTPC Renewable Energy with 500 MW, ACME Solar, which competed for the entire 1,785 MW capacity, received 375 MW.
Sprng Energy Natural Power Source (a Sprng Energy special purpose vehicle (SPV)) won 200 MW, Metka EGN Singapore Pte 20 MW, and Calpine Subsico Solar Energy (a UPC Renewables SPV) 90 MW.
The offer was issued by SECI in March of this year. SECI changed the proposal submission deadline, extending it from April 15, 2021, to May 21, 2021.
The tender has the bidders to adhere to the technical specifications, in accordance with its documentation. One of the occurrences stipulates that the cells and modules used in the RFS project must be purchased exclusively from versions and producers on the ‘authorized list of models and manufacturers (ALMM)’ conveyed by the Ministry of New and Renewable Energy (MNRE).
The auction resulted in the second-lowest tariff for 2021. The previous low pricing in 2021 was Rs. 2.14/unit for the procurement for 500 MW of installations at Madhya Pradesh’s Neemuch Solar Park.
The lowest tariff of 2020 at Rs 2.00/unit discovered by SECI at the 1070 MW (Tranche-III) Rajasthan solar auctions looks set to remain so through 2022 as well, given how prices are constantly increasing and the impending duties that will add to that stress beginning in April 2022.
Al Jomaiah Energy and Water Company, and Green Infra Wind Energy Limited, a subsidiary of Sembcorp, proposed the lowest tariff for 200 MW and 400 MW solar projects, respectively.
Bidders will undoubtedly be expecting equipment prices to stabilize, and potentially even fall closer to 2020 levels, in order to safeguard their margins in this victory. Ordering for equipment is unlikely to begin until late 2022, giving them plenty of time to expect the necessary turn in direction.