Karnataka’s dispersed 1.2GW PV auction decreased transparency for developers

Facebook
Twitter
LinkedIn
Reddit
Email
The new taluk-based bidding is likely to create heated debate in the sector. Flickr: Vinoth Chandar

The Indian state of Karnataka’s 1.2GW solar auction, which invited bids for capacities of up to 20MW at a time in separate localities, has lowered the transparency of the tender process for solar developers, according to the latest update from consultancy firm Bridge to India.

The auction was for projects in 60 taluks – subdivisions of a district such as a group of villages – in an attempt to create an even spread of solar capacity across the southern Indian state.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

However, Mudit Jain, consultant at Bridge to India, reported that because of the separate taluk-based bidding, some developers lost out on capacity even if they bid more aggressively than other successful developers, because they were competing for different taluks.

Jain cited Indian conglomerate Aditya Birla Nuvo bidding INR4.76/kWh in Gangavati taluk but losing out due to high competition in this taluk. Meanwhile, Jindal Aluminium managed to win 10MW at the far higher tariff of INR5.85/kWh in Mayakonda taluk as it was the only bidder.

Jain added: “Effectively, this process has resulted in less transparency for the bidders and a relatively higher cost of procurement for the state distribution companies. Many developers who did not win projects despite aggressive bids will feel that they have unfairly lost out.”

Results

Of the original capacity, 100MW had been reserved for Karnataka-based cell and module manufacturers. As there were only four bidders for these local projects, Emmvee, Tata Power Solar, Swelect Energy and Microsun, they all received premium tariffs ranging between INR 5.94-6.50/kWh, which were roughly INR1.50/kWh above the open category bid winners, said Jain.

The open category saw 800MW awarded with tariffs ranging between INR4.69-5.85/kWh. Strong competition was seen despite land acquisition being a major challenege in the state and the small-size projects preventing developers from benefitting from economies of scale.

The biggest capacity winners included:

  • Hero Future energies, 180MW at INR4.69-4.86/kWh
  • Renew Power, 180MW at INR4.76-5.05/kWh
  • Aditya Birla Nuvo, 60MW at INR4.86-4.97/kWh

Other winners included Essel Green Energy and OPG Power generation.

There were 12 taluks receiving no bids and this means around 240MW will be retendered, said Jain. Similarly, the Solar Energy Corporation of India (SECI) has had to re-tender 50MW of grid-connected solar projects under its Domestic Content Requirement (DCR) category in the state of Maharashtra.

Typically, over the last year, it has been the low tariffs quoted by ambitious players that has generated heated debate in the industry over project viability and sustainable growth, but Karnataka's new taluk-based bidding is likely to be the next focus of debate in the coming week or so.

Read Next

June 9, 2025
Saatvik Solar, a unit of Saatvik Green Energy Limited (SGEL), is building a 4.8GW solar cell and 4GW module manufacturing facility in Ganjam district of Odisha.
June 5, 2025
Solar manufacturer Involt Energy has broken ground on its first solar cell manufacturing plant in the western Indian state of Gujarat, with an initial annual nameplate capacity of 1.78GW. 
June 5, 2025
Indian solar module manufacturer Vikram Solar has received final approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO) and raise capital through the public markets.
June 5, 2025
Investment in clean energy and grids will reach US$2.2 trillion in 2025, double the expected investment into fossil fuels this year, according to data from the International Energy Agency (IEA).
June 2, 2025
Arctech has partnered with ACME Cleantech Solutions to provide 175MW worth of solar trackers for an upcoming facility in Duqm, Oman.
May 30, 2025
Waaree Solar Americas – a subsidiary of Indian solar manufacturer Waaree Energies – has signed a 586MW solar module supply agreement with North Carolina-based Pine Gate Renewables.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
September 16, 2025
Athens, Greece