No ‘mad race’ in Uttarakhand solar auction but bankability fears remain

Facebook
Twitter
LinkedIn
Reddit
Email

All the winning bids in the latest 170MW Indian state solar auction in Uttarakhand have remained below the INR6/kWh (US$0.09) tariff, despite several bankers commenting on previous auctions that only prices of INR6-6.5 per unit would be workable given India’s market conditions.

However, Ali Naqvi Imran, head, strategy consulting, Gensol Engineering, and Bhuwan Mehta, senior consultant, at Gensol Engineering, who were both present at the auction, told PV Tech that the Uttarakhand bidding appears to be a “welcome change from the mad race” that was seen at the previous three auctions in Madhya Pradesh, Telangana and Punjab, where the winning bids came in extremely close to the INR5/kWh mark.

Fears about the viability of projects won under such low bids in these three auctions were confirmed earlier this month when Gayrajan Kohli, senior manager, consulting, Bridge to India, told PV Tech that discussions with an unnamed leading project developer revealed that it was considering dropping one of the projects it won through an “overly aggressive strategy”.

The Gensol consultants said that the range of winning bids in Uttarakhand was INR5.57-5.99/kWh, with 22 individual projects being awarded in the bid. Indian firm Rays Power Infra was the lowest bidder with an average tariff of INR5.575/kWh.

The two Gensol consultants added: “Although, the questions of viability still remain, there is definitely a sign of caution here, and the tariff is somewhat representative of land and connectivity costs in Uttarakhand as compared to other bids.

“This bid will surely encourage small developers in future, and will help Uttarakhand to build its renewable energy portfolio through future offerings. Interestingly, unlike other bids, the winning bids are uniformly distributed throughout the winning range.”

No further information on the winning bidders was available at the time of writing.

Back in September, when the tendering was announced, Bridge to India consultant Mudit Jain told PV Tech that Uttarakhand already has abundant hydro power resources, while also having “very expensive” land, and he questioned the need for solar capacity in the state.

Last month, PV Tech also interviewed Bridge to India founder and managing director Tobias Engelmeier on the issue of low winning tariffs in India's state solar auctions.

26 September 2022
The WCPEC is the world’s biggest platform for PV research and development, offering a unique possibility of international exchange by combining the three largest and most prominent international PV conferences: the European PV Solar Energy Conference (EU PVSEC), the Photovoltaic Specialists Conference (IEEE PVSC) and the International PV Science and Engineering Conference (PVSEC). In 2022, Europe has the honour to host the 8th World Conference on Photovoltaic Energy Conversion, interchanging the prestigious EU PVSEC for this year, that is being held annually for more than 40 years. After being in place for more than a quarter of a century, the WCPEC, being held every four years, is firmly established among the global PV community as THE event for the greatest minds and experts in various PV sectors to meet and discuss, to exchange and network! The conference programme is coordinated by the European Commission Joint Research Centre.
27 September 2022
The demand for rooftop solar PV is soaring, driven by falling costs of the technology against energy crises that are gripping countries globally. But while an increasing number of households turn to solar to generate their own electricity, there is now a need for more specialist equipment, technologies and services to ensure the solar transition can reach as many customers as possible. Delivering these is now a major challenge for rooftop solar installers. This webinar will analyse the characteristics of the rooftop solar market, discussing how the products, logistics, installation and servicing of solar systems has evolved in line with consumer demands.
4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.
11 October 2022
RE+ Florida returns in 2022. Solar & Energy Storage Florida is now RE+ Florida! This premier event for the Sunshine State will return October 11-12, 2022 in Miami.
11 October 2022
PV CellTech Extra will be held as a series of live webinars and on-demand sessions on 11-13 October 2022. We'll be taking a slightly further forward-looking view at the technologies and roadmaps for new cell architectures set to dominate mass production during 2023-2025 with special emphasis on the potential timelines for technologies beyond the single-junction cell design, including perovskite and hybrid concepts.
13 October 2022
The 2022 ACORE Grid Forum is a one-day event that convenes regulators, renewable, storage and transmission companies, and other leading grid experts in Washington, D.C. Speakers will examine the roles of administrative orders and actions, infrastructure policy, regional and state developments, and private sector strategies on the path to a carbon-free grid.

Read Next

September 23, 2022
India’s government has approved the second round of the production-linked incentive (PLI) scheme to incentivise domestic solar PV module manufacturing.
PV Tech Premium
September 23, 2022
Plans for a temporary revenue cap on solar PV assets across the European Union (EU) could dent investor confidence in renewables, experts have warned, amid concerns that individual member states may be able to set lower caps specific to different technologies.
September 23, 2022
Solar accounted for half of all global power generating capacity added last year, with 182GW deployed, a 25% increase on 2020, according to a report from BloombergNEF (BNEF).
PV Tech Premium
September 23, 2022
Community solar in the US is projected to grow substantially over the next decade and represents a means of expanding access to underserved communities who are being left out of the energy transition. Sean Rai-Roche explores the drivers of community solar and what obstacles need to be overcome to support its rollout.
September 22, 2022
The RE+ tradeshow has been full of hope, excitement but also short-term questions as the industry considers the significance of the IRA.
PV Tech Premium
September 22, 2022
The war in Ukraine, approaching its eighth month, is having an extremely detrimental effect on the country's solar sector.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 27, 2022
15:30 AEST (UTC +10)
Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)