Indian solar tariffs stay low in 500MW Maharashtra auction

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
The Maharashtra auction saw a fewer number of bidders than non VGF auctions of late. Flickr: Arian Zwegers

Indian solar tariffs have stayed low in the latest auction for 500MW of capacity in the Indian state of Maharashtra, which was tendered by the Solar Energy Corporation of India (SECI) and included Viability Gap Funding (VGF).

A total of eight players won capacity in the tender last week, with seven developers bidding with a tariff of INR4.43/kWh with varying levels of VGF, which is a funding mechanism provided by the government of India.

However, Bhageria Industries put in the lowest winning bid for 30MW with a lower tariff of INR 4.41/kWh and did not require any VGF.

The following bidders won capacity:

  • Bhageria Industries, 30MW (VGF – 0)
  • Talettutayi Sola, 50MW (VGF – INR4.6 million)
  • Orange, 100MW (VGF – INR4.77 million)
  • Sepset Constructions (RattanIndia), 40MW (VGF – INR4.9 million)
  • Krishna, 10MW (VGF – INR5.35 million)
  • AMPL Cleantech, 50MW (VGF – INR5.37 million)
  • Welspun Renewables, 100MW (VGF – INR 5.37 million)
  • Suzlon Energy, 70MW or 120MW (VGF – 5.4 million)

PV Tech has yet to confirm whether Suzlon won 120MW or 70MW capacity. This is because a 50MW section of the 500MW available may be reserved for the Domestic Content Requirement (DCR) category.

Jasmeet Khurana, associate director at consultancy firm Bridge to India told PV Tech that these are higher net tariffs than those seen in the recent auction in Rajasthan, which saw record low prices of INR 4.34/kWh.

Khurana said there are three main reasons for the slightly higher tariffs in Maharashtra, which includes the capacity being outside solar parks, the projects having smaller capacities and the off-taker being SECI as opposed to the National Thermal Power Corporation (NTPC).

Indian power minister Piyush Goyal responded to the record low bids in Rajasthan last week on Twitter:

Khurana said solar is now cheaper than some new greenfield coal-fired power capacity, but not all coal generation at present.

Meanwhile Vishwanathan Iyer, general manager, business development, Solar Business at Indian EPC firm Sterling & Wilson, also took to Twitter to express concern about the continuation of low tariffs:

Read Next

May 5, 2021
SHV Energy, a Netherlands-based liquified petroleum gas (LPG) distributor, has acquired a majority stake in Indian solar developer SunSource Energy.
April 30, 2021
Solar manufacturers that plan on setting up integrated, higher capacity plants in India will be given preference in the country’s new production-linked incentive (PLI) programme.
April 14, 2021
While recent solar auctions in Spain and Portugal have made headlines with low prices and high levels of participation, the power purchase agreement market will be key to helping both countries reach their 2030 solar deployment targets, it was suggested during a panel discussion.
PV Tech Premium
April 8, 2021
After a challenging year, India’s solar sector stands primed for something of a rebound. But a host of familiar issues, from the perilous state of DISCOMs to regulatory uncertainty, run the risk of stymying future growth. Vinay Rustagi, managing director at consultancy Bridge to India, talks to PV Tech about the future prospects for Indian solar.
April 8, 2021
Tata Power Solar has expanded its PV manufacturing facility in Bengaluru, India, taking the total production capacity of modules and cells to 1.1GW.
April 1, 2021
Norwegian independent power producer Scatec is looking to collaborate with project developers in India as part of efforts to gain a foothold in the country’s burgeoning solar sector.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021