Karnataka has taken another major step toward expanding decentralized solar energy with the completion of a recent auction conducted by the Hubballi Electricity Supply Company. The auction aimed to develop 423.7 MW of solar power capacity across the state and attracted wide participation from developers. A total of thirty companies won bids to set up eighty separate solar projects. Some of the notable winners include Solar91 Cleantech, Nithin Sai Constructions, Ravindra Energy, Sri Srinivasa Constructions, and Mahaveer Electro Mech. Their participation indicates strong interest from both established and emerging firms in contributing to Karnataka’s renewable energy expansion.
The tariffs discovered in the auction ranged between ₹2.70 per kWh and ₹2.99 per kWh. These rates are lower than the ceiling tariff of ₹3.07 per kWh that had been set earlier by the state electricity regulator. The outcome reflects active competition among developers and a willingness to offer lower prices to secure long-term agreements. This is expected to benefit HESCOM and its consumers by reducing the cost of solar power procurement.
The tender, issued in August, focuses on solarizing feeders and substations under HESCOM. The plan is to integrate solar projects directly into the distribution network using the RESCO model. This approach is expected to help reduce technical losses, improve supply quality, and support more efficient energy delivery at the local level. Developers selected in the auction will handle a wide range of responsibilities. These include land procurement for a 25-year period, detailed site surveys, engineering and design work, installation of solar systems, and long-term operation and maintenance.
In addition to building and maintaining the projects, developers must set up the required 11 kV transmission systems and ensure remote monitoring capability. A key requirement of the tender is the use of solar modules manufactured in India, in line with the Approved List of Models and Manufacturers issued by the Ministry of New and Renewable Energy. This condition supports domestic manufacturing and aligns with national goals to increase local production of renewable energy equipment.
The projects are expected to operate with an annual capacity utilization factor of 19%. Once power purchase agreements are signed, developers will have twelve months to bring the projects into commercial operation. The successful completion of this auction supports HESCOM’s renewable energy targets and helps strengthen Karnataka’s leadership in the solar sector by promoting cleaner and more reliable power for consumers.
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