6.4 GW solar auction concludes with lowest price of INR 2.47/kWh

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The Andhra Pradesh solar auction for 6.4 GW of grid-connected solar capacity was oversubscribed by 8.5 GW. The auction saw five players, including Adani Green, HES Infra, NTPC, Shirdi Sai Electricals and Torrent Power, submitting bids for a combined capacity of 14.9 GW.

Auction results shared by consultancy JMK Research show the lowest winning bid of INR 2.47/kWh from Torrent Power, which secured 300 MW capacity. Adani Green secured the biggest chunk of 3 GW across five locations (600 MW each). Shirdi Sai Electricals secured 2.2 GW, NTPC 600 MW, and HES Infra 300 MW.

“Out of these five players, HES Infra, a civil contractor firm, and Shirdi Sai Electricals, a transformer manufacturer, are the new entrants that have participated for the first time,” it said.

JMK cited lack of international participation as one reason for the higher tariffs discovered in this auction than record-low prices of INR 1.99–2.00 achieved earlier. “It could be partly due to lesser time for bid submission, because of which many players were not able to conduct detailed site assessment,” it said.

Higher risks associated with the earlier power purchase agreement (PPA) renegotiation issues with the Andhra Pradesh government and low solar irradiation level compared to Rajasthan also played a part.

The tender was floated by the Andhra Pradesh Green Energy Corporation Ltd (APGECL) in December last year. The solar capacity shall come up across ten locations in Anantapur, Kadapa, Kurnool, and Prakasam districts.

The APGECL shall enter into a PPA with the successful bidders for 30 years. Power procured from the projects has been provisioned to meet the demand of agricultural loads in the State.

 

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