Reliance Power Chairman Anil Ambani today said the company is looking at inorganic growth...
Sembcorp Industries (Sembcorp) said Tuesday it has signed a long-term solar energy deal with...
The latest reverse auction for 500 MW capacity of solar power in Gujarat has discovered tariff of Rs 2.44/unit, matching the lowest-ever rate in the country for the fourth time after it was first found in May 2017 for Rajasthan’s Bhadla projects.
According to sources in the Gujarat Urja Vikas Nigam, Aditya Birla Renewables secured 100 MW solar development project by quoting the lowest bid, which was matched by Giriraj Renewables to win 300 MW. Azure Power won 100 MW by quoting Rs 2.45/unit.
This is the second time the state conducted auctions for this tender after it had cancelled the tender in April as it found the tariffs “discovered were on the higher side”.
The lowest tariff discovered in the first auction in March was Rs 2.98 per unit. When the first bids took place, the Ministry of New and Renewable Energy had not amended the bidding norms for solar projects, and it was then not clear to developers whether or not all indirect taxes (such as safeguard duty) could be a pass-through under the “change in law” provision.
Ahmedabad-based Kalthia Engineering was the lowest bidder in the previous round, while the other winners were Gujarat State Electricity Corporation, ACME and Azure Power.
About 4 GW of recent solar bids were scrapped due to higher price discoveries, including a 1 GW auction called by Uttar Pradesh. The Solar Energy Corporation of India (SECI) also cancelled 2,400 MW bids from the 3,000 MW solar auction held in July. Only Acme Solar’s 600 MW bid was not scrapped from the latter auction as the company had quoted the lowest tariff of Rs 2.44/unit. The same tariff was also discovered in the reverse auction for 2,000 MW capacity conducted by the SECI earlier in July.
Gujarat is one of the few states over the last two or three years, where the actual payment cycle by distribution utilities to renewable power producers is within the prescribed timelines. It has one of the best solar radiation-receiving areas in the country, experts said.