- UPNEDA has auctioned 1 GW of PV capacity to be set up across the state of Uttar Pradesh
- The lowest and highest winning tariffs ranged between 3.48 to 3.55 INR ($0.051 to $0.052) per kWh
- ACME Solar has won a total of 300 MW PV capacity, the largest capacity in the tender
- Winners offering lowest tariff of 3.48 INR were Adani’s Mahoba Solar (250 MW) and Maheshwari Mining & Energy Private Limited (20 MW)
- Canadian Solar’s Feynman Solarfarms won 50 MW for 3.54 INR ($0.051) per kWh and another 20 MW for 3.55 INR ($0.052) per kWh
ACME Solar has won a total of 300 MW PV capacity, the largest in the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) gigawatt-scale tender. Of the auctioned 1 GW PV, ACME won 150 MW for a tariff of 3.54 INR ($0.051) per kWh, and another 150 MW for 3.55 INR ($0.052) per kWh, according to Mercom India Research.
UPNEDA had launched this tender in January 2018 for projects to be set up anywhere across the state. Developers were at liberty to offer multiple bids on the basis of specific project location (see ).
Overall, the winning tariffs ranged between 3.48 INR to 3.55 INR ($0.051 to $0.052) per kWh. The highest bid was received from Fortune Credit Capital with 5.75 INR ($0.083), which did not win any capacity.
Adani’s Mahoba Solar bagged 250 MW capacity with the lowest winning tariff of 3.48 INR ($0.051) per kWh. Adani quoted a single tariff for all project locations, according to Consultancy Mercom.
Maheshwari Mining & Energy Private Limited (MMEPL) won 20 MW for 3.48 INR, like Adani. Canadian Solar’s Feynman Solarfarms took 50 MW for 3.54 INR per kWh, and another 20 MW for 3.55 INR per kWh.
Azure Power was another big winner grabbing 160 MW for 3.55 INR per kWh tariff. Other winners were Sukhbir Agro Energy, Rays Power Infra, Eden Renewable Jasmin, and Hero Solar Energy.
Wining tariffs in this auction are much higher than the two recent Solar Energy Corporation of India (SECI) auctions, one of which had tariffs touching the previous record low of 2.44 INR ($0.035) per kWh (see ). The Kadapa Solar Park auction’s lowest tariff was 2.70 ($0.039) per kWh (see ).
Quoting the senior management of one of the bidding companies, Mercom says the reasons behind higher tariffs in these auctions are low capacity utilization factors in Uttar Pradesh compared to sunnier states, a tight project completion timeline of only 13 months, and a poor rating of state discom Uttar Pradesh Power Corporation Limited (UPPCL).