- UPNEDA has cancelled the 1 GW solar auction that was announced in July 2018
- High tariffs quoted by winning bidders was stated as the reason for the cancellation
- The agency is now inviting bidders to bid for 500 MW capacity
The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has declared its recent 1 GW solar PV auction null and void. Its official reasons for this move are high tariffs quoted by winning bidders, according to Mercom India Research.
The 1 GW tender was originally launched in January 2018. It was later amended, and finally auctioned in July 2018. The lowest winning bid of 3.48 INR ($0.0506) per kWh was offered by Adani’s Mahoba Solar and Maheshwari Mining & Energy (see Uttar Pradesh Auctions 1 GW PV Capacity).
Comparatively, the 2 GW Solar Energy Corporation of India (SECI) auction that preceded the UPNEDA auction, reported an L1 tariff of 2.44 INR ($0.035) per kWh (see 2.44 INR PV Tariff In 2 GW SECI Auction).
UPNEDA is now inviting online e-bids from interested bidders for a total of 500 MW capacity.
The state of Uttar Pradesh is targeting 10.7 GW of solar power capacity by 2022. According to a recent study by Centre for Environment and Energy Development (CEED), six cities in the state alone hold 11.4 GW of rooftop solar potential by using only 11% of their built-up area (see 6 Indian Cities Hold 11.4 GW PV Rooftop Potential).
UPNEDA has followed the lead of Gujarat Urja Vikas Nigam Ltd., that cancelled a 500 MW PV tender for the same reasons in April 2018 (see 500 MW PV Auction Scrapped In Gujarat).