Costly land pushes solar tariff to Rs 3.48/unit for 1 GW auction in UP

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Mumbai | Published: July 13, 2018 5:05:55 PM

Solar tariffs jumped to Rs 3.48 per unit at the latest auctions for 1,000 MW, conducted by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), on account of higher land costs and lower irradiance in the region.

Solar tariffs, Uttar Pradesh, UPNEDA, Adani Group firm, MMEPL, ACME Solar Holdings According to people close to the development, Mahoba Solar (UP), an Adani Group firm, quoted the lowest tariff of Rs 3.48/kWh to develop 250 MW of projects.( Reuters)

Solar tariffs jumped to Rs 3.48 per unit at the latest auctions for 1,000 MW, conducted by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), on account of higher land costs and lower irradiance in the region. According to people close to the development, Mahoba Solar (UP), an Adani Group firm, quoted the lowest tariff of Rs 3.48/kWh to develop 250 MW of projects.

The results of the latest auction signal the trend of wide variations in solar tariffs discovered across the country, with bidders turning more sensitive to region-specific conditions. As FE reported earlier, the reverse auction for 2,000 MW capacity held earlier this month had discovered tariff of Rs 2.44 per unit, which matched the lowest-ever rate that had been found in May 2017 for Rajasthan’s Bhadla projects.

As for the UPNEDA auction, Maheshwari Mining & Energy (MMEPL) also quoted Rs 3.48/kWh to develop 20 MW, ACME Solar Holdings secured largest capacity by bidding at Rs 3.54/kWh for 150 MW of solar PV projects, and Rs 3.55/kWh for another 150 MW projects. Feynman (Canadian Solar)’s bid came at Rs 3.54/kWh to develop 50 MW.

The company also bid for 50 MW at Rs 3.55/kWh, but were only awarded 20 MW. Sukhbir Agro Energy’s bid was at Rs 3.54 for 50 MW, while Rays Power Infra and EDEN Renewables bid at Rs 3.55/kWh for 50 MW each. Azure Power’s bid came at Rs 3.55 for 160 MW, while Hero Solar’s bid was Rs 3.55/kWh for 50 MW.

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