Prices surprise in Gujarat’s 500MW solar auction

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Developers will have to buy their own land. Credit: Sunbourne

A 500MW solar auction in the Indian state of Gujarat, held by Gujarat Urja Vikas Nigam Ltd. (GUNVL) has seen a winning low bid of INR2.65/kWh (US$0.041), which is slightly higher than the previous major auction in Rajasthan that saw INR2.44/kWh.

However, several industry executives at the REI Expo near Delhi today told PV Tech that, despite the correction from the last auction, they were surprised at how low the prices were still and said they should have been far higher.

Gujarat has lower irradiation than Rajasthan and the last few months have seen greater uncertainties arise such as the GST tax additions and the looming threat of anti-dumping duties, which it seems many REI delegates are now expecting to be introduced. Questions remain about at what level they will be set.

Moreover, developers in this Gujarat auction will have to find and purchase land for themselves, unlike at the Rajasthan Bhadla solar park.

Jewellery firm GRT Jewellers put in the lowest bid of INR2.65 for 90MW. Meanwhile, state-owned firm Gujarat State Electricity Corporation (GSEC) won 75MW at a tariff of INR2.66/kWh and another state-run firm Gujarat Industries Power Company (GIPCL) also won 75MW at a tariff of INR2.67/kWh.

Major Indian PV player Azure Power also won 260MW at a price of INR2.67/kWh. PV Tech attempted to speak to Azure Power at REI about the prices, but the firm would not comment before an official company release is issued.

Executives at REI said the prices were risky given the various uncertainties and the projects will have to be carried out with no hiccups, such as delays, currency exchange fluctuations, land acquisition troubles or higher than expected anti-dumping duties.

Many felt that Indian solar tariffs are expected to come out at a fairly flat rate in the coming 12 months.

Read Next

June 23, 2021
Solar wafer provider 1366 Technologies is actively exploring manufacturing opportunities in India, seeking a local partner.
June 22, 2021
Finnish utility Fortum has secured a deal to divest two solar projects in India totalling 500MW of capacity to private equity firm Actis.
June 18, 2021
UNOPS Sustainable Investments in Infrastructure and Innovation (S3i) has signed an agreement to invest in a 250MW solar plant in Rajasthan, India
June 16, 2021
EQT infrastructure has announced a takeover bid for Solarpack, which owns approximately 450MW of operational solar PV projects.
June 16, 2021
Azure Power Global saw its cost of deploying solar fall by nearly 19% last year, but the company still recorded a net loss of US$38.1 million in the quarter ending 31 March 2021 despite a year-on-year increase in revenue.
June 7, 2021
India’s rising renewable power capacity could render the country’s 33GW of coal-fired power plants under construction unviable.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021