India solar auction three times oversubscribed

  • Gavel
    The second 1,000MW auction for the next phase of JNNSM is expected to be announced in May 2014.

Bidding for the second phase of India’s national solar mission (JNNSM), which offered 750MW of solar capacity, was flooded with bids totalling 2,170MW, according to solar consultants, Bridge to India. 

The two bidding rounds received 68 bids from 58 developers, proposing 122 projects. 

Half of the 750MW on offer had a domestic content requirement (DCR) with the other half unrestricted.

The DCR round received 36 project proposals amounting to 700MW for the allocated 375MW.  

The remaining 86 project bids, in the second open half of the auction, received 1,470MW of proposed solar projects.  

The second, 1,000MW auction for the next phase of JNNSM is expected to be announced in May 2014.

The auction was the first to use Viability Gap Funding (VGF), a government grant towards up to 30% of the cost of projects, despite concerns from developers and analysts the funding will not be paid on time. The projects that have been allocated funding will be announced on 20 February.

The auction also controversially employed a DCR despite international concerns on fair trade, and analysts predicting the requirement as more detrimental than beneficial, and even trade disputes.

Under the DCR half of the auction, bidders included: Tata Power, Waaree, Moser Baer, SolaireDirect, SunEdison, ACME, Azure, and Welspun.

State-owned power companies in Gujarat, Karnataka, Odisha and West Bengal also took part in the auction.

Significant project proposals included: Azure Power and ACME with 200MW projects, Welspun with 160MW and SunEdison with 150MW. However the maximum capacity to be allocated per developer, as part of the JNNSM is 100MW.

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