The solar power tenders continued to gather pace in May as state-owned NTPC and Solar Energy Corporation of India (SECI) bid out a total of 750 MW in Andhra Pradesh and Telangana under the national solar mission this week.
NTPC had invited bids for 350 MW to be installed in Telangana under reverse e-auction. The average winning bid for these auction continued to remain below R5/unit at R4.66/unit. The tariffs, in fact, declined from the those discovered in Karnataka last month at R4.78/unit.
“The winning bids in Telangana show that there is still enough appetite in the market despite the recent news of financial turmoil emanating from one of the foreign developers (SunEdison). These bids also allay fears regarding bankers’ reluctance to fund below R5/unit tariff projects,” a solar power developer told FE on condition of anonymity.
Additionally, SECI’s 400 MW tenders were based on a fixed tariff of R4.43/unit with the company providing additional viability gap funding for projects. The successful bidders were decided on the lowest amount of VGF sought, which came in from FRV Solar Holding at R44.5 lakh/MW to win 100 MW.
ACME Solar Holding and Azure Power emerged as the only companies that managed to win part of capacity on offer in both the bids. ACME won 150 MW out of 400 MW at the SECI-bid after quoting a VGF of R55 lakh/MW. Azure Power won 50 MW and 100 MW in SECI and NTPC’s bids respectively.
“After bagging this tender, our overall portfolio has expanded to 1,519 MW. Through this tender, we have further consolidated our position in the country’s solar map as the leading solar power developer,” Manoj Upadhyay, founder and chairman, ACME, said .