INR 2.55kWh As Lowest Bid For 2 GW India Solar Auction

• Auction results for 2 GW NHPC ISTS-connected solar PV project tender are out
• Lowest winning bid of INR 2.55 per kWh was offered by SB Energy, Axis Energy Ventures, O2 Power and Eden Renewables
• Maximum capacity of 600 MW was secured by SB Energy; Avaada Energy won 320 MW for INR 2.56 per kWh bid despite bidding for 600 MW
• In a related news from India, the government has allowed construction activity for renewable energy projects in the country from April 20, 2020 among other measures to encourage economic activity under duress from COVID-19 impact

The National Hydroelectric Power Corporation Limited (NHPC) attracted INR 2.55 ($0.0335) per kWh as the lowest winning bid for its 2 GW interstate transmission system (ISTS)-connected solar PV project tender launched in September 2019 with tariffs capped at under INR 2.95 per kWh.

NHPC later revised the ceiling tariff to INR 2.65 ($0.037) per kWh, according to Mercom India Research.

SoftBank's SB Energy won the biggest chunk of 600 MW for INR 2.55 per kWh and winning 400 MW, 380 MW and 300 MW for the same tariff were Axis Energy Ventures, O2 Power and Eden Renewables, respectively. Avaada Energy placed its bet on 600 MW, but managed to win oney 320 MW for INR 2.56 ($0.0338) per kWh.

According to Mercom, the tender was oversubscribed with 9 contenders bidding for 3.78 GW. Those eliminated include Tata Power, AMP Solar, NTPC and ReNew Power.

"During lockdown we kept our interaction with stakeholders alive through Virtual platforms and also brought out new bids. This status is the result of several measures which we have undertaken during the past few months to enhance confidence of investors and to promote ease of doing business. We stand committed to minimizing the risk to investors," said Ministry of New and Renewable Energy (MNRE) head RK Singh on his Twitter handle, referring to the NHPC auction.

In another news from India, the Indian economy like several other economies of the world has come to a standstill with all business and financial activity suspended due to COVID-19 impact – and the solar industry is no exception. Only operational projects were being allowed to operate as part of essential services.

Now, while the nationwide lockdown has been extended till May 3, 2020, the government has allowed construction activities on site of renewable energy projects under revised guidelines issued that will come into effect from April 20, 2020.

Mercom observed that while the decision has brought a breather to the renewable energy industry, it is unclear how construction workers who have gone back to their hometown in the interim will get to work with travel restrictions in place.