Tariff ceilings and COVID-19 worries haunt 500MW solar tender in Gujarat

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Flickr: Arian Zwegers

Indian utility Gujarat Urja Vikas Nigam Ltd (GUVNL) has garnered just 430MW of submissions in its latest 500MW solar tender.

Tata Power, Juniper Green and Vena Energy were the only firms to submit bids under the tender, resulting in undersubscription. A reverse auction was due for 16 March this year.

Vinay Rustagi, managing director of consultancy firm Bridge to India, told PV Tech: “The low tariff ceiling (INR 2.65) [around 3 US dollar cents per kWh] is believed to be a major issue particularly due to uncertainty caused by Coronavirus.”

The ceiling tariff set by the utility came despite an order from the Ministry of New and Renewable Energy (MNRE) last week directing state utilities and central agencies not to include upper ceiling tariffs in future renewable energy auctions.

Last May, GUVNL's 500MW tender saw tariffs in the range of INR 2.65-2.70/kWh.

Analysts believe India’s solar market will reach an installed capacity of 82GW by 2024, up from 39GW in 2019, despite policy friction between central and state governments.

The country – told by experts it risks missing its clean energy targets for 2022 – may grant deadline extensions to PV projects affected by coronavirus-driven delays with components.

Read Next

February 24, 2021
France’s ninth auction for ground-based solar PV has seen 452MWp awarded, with average prices up 4.7%.
February 2, 2021
India’s government has increased basic customs duty (BCD) on solar inverters as part of efforts to bolster domestic manufacturing but has excluded modules from any changes.
January 5, 2021
An auction for solar-plus-storage in Israel has awarded contracts for 609MW of solar PV alongside 2.4GWh of energy storage.
December 21, 2020
Indian utility Gujarat Urja Vikas Nigam Limited has auctioned 500MW of PV capacity, with winning bids setting a record for the lowest solar tariff seen in India.
November 26, 2020
Solar tariffs in India hit a record low of INR2/kWh (US$0.0270/kWh) following an auction this week for 1,070MW of PV projects that are set to be developed in the state of Rajasthan.
November 25, 2020
Lots for PV projects on dams and beside motorways are set to be included in Portugal’s third solar tender, the country’s state secretary for energy, João Galamba, has said.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
March 9, 2021
Solar Media Events
March 17, 2021
Solar Media Events
April 13, 2021
Solar Media Events
April 20, 2021