The Andhra Pradesh Green Energy Corporation (APGECL) has auctioned 6.4 GW solar PV capacity it had tendered back in December 2020, as part of the state government’s 10 GW solar power supply plans for farmers (see Andhra Pradesh Launches Tender For 6.4 GW Solar).
Torrent Power quoted the lowest bid of INR 2.47 ($0.034) per kWh to stake claim to a 300 MW project for Kambadur Ultra Mega Solar Park in Anantapuram district. NTPC secured a 600 MW project for Chakrayapet Ultra Mega Solar Park in Kadapa district to be developed for INR 2.48 ($0.034) per kWh.
Telangana based Shirdi Sai Electricals Ltd (SSE) quoted INR 2.48 per kWh for 3×600 MW capacity to be developed at Kolimigundla Ultra Mega Solar Park in Kurnool, Kambadur Ultra Mega Solar Park and Uruchintala Ultra Mega Solar Park both in Anantapuram, along with a 400 MW project for INR 2.49 per kWh in Thondur Ultra Mega Solar Park in Kadapa.
Adani Renewable Energy Holding Twelve Limited quoted INR 2.49 ($0.034) per kWh for 4×600 MW projects in M. Kambaladinne Ultra Mega Solar Park and Pendlimarri Ultra Mega Solar Park both in Kadapa, Rudrasamudram Ultra Mega Solar Park in Prakasam, Mudigubba Ultra Mega Solar Park in Anantapuram. Another 600 MW project it offered a INR 2.58 ($0.035) per kWh tariff for is CS Puram Ultra Mega Solar Park in Prakasam. This way, it emerged as the largest winner with 3 GW.
HES Infra Private Limited quoted INR 2.49 per kWh for 600 MW capacity but could manage to get 300 MW capacity for Kambadur Ultra Mega Solar Park in Anantapuram.
Mercom India Research said letter of award (LOA) will be issued to winners basis the outcome of the petition filed by Tata Power Renewable Energy in the Andhra Pradesh High Court to stop the auction in response to which the court had directed the APGECL to not go ahead with any agreements for its 6.4 GW solar power projects (see India PV News Snippets: Tata Power, ITC, AP, Total, SECI).
According to analysts at JMK Research, the tender was oversubscribed with a combined 14.9 GW of bids coming in and added that the INR 2.47 per kWh lowest bid offered has brought in a revision in solar tariff trends in India where the lowest tariff went down to INR 1.99 per kWh in December 2020 (see Historic Low For Indian Solar Tariffs @INR 1.99/kWh). They believe this suggests that INR 1.99 per kWh tariff ‘might be purely on a situational basis’. They explain the reasons behind developers quoting higher than the historic low for the 6.4 GW tender as higher risks associated with renegotiations with the state government (see Andhra Pradesh’s 5.2 GW RE Projects Under Stress). At the same time, there were no international developers participating that lowered the risk of competition and lower solar irradiation levels in the state.