Industry body National Solar Energy Federation of India (NSEFI) has sought the central government’s intervention to stop 500 MW solar auction cancellation by Uttar Pradesh and direct the State Government to issue a letter of Intent (LoI) to winning developers.
The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) had floated the 500 MW tender in 2019. The auction in February 2020 saw the consortium of Saudi Arabia’s Al Jomaih and India’s Jakson Power emerge winner for 100 MW. Singapore’s NV Vogt secured 50 MW, Vijay Printing 25 MW and SolarArise 9 MW. NV Vogt quoted the lowest winning tariff of INR 3.17/kWh. The remaining three developers won their respective capacities at INR 3.18/kWh.
As per the tender document, UPNEDA was supposed to issue the LoI by May 15, 2020 (within 94 days of the e-reverse result). However, it failed to issue the LOI within these timelines despite the regular follow-up by the winning developers and requested an extension of the bid period validity on various occasions.
NSEFI said its members duly accepted UPNEDA’s request and have also been extending the EMD (the EMD submitted is valid till June 30) along with an extension of the bid validity period to enable UPNEDA to issue the LoI. Despite this, UPNEDA communicated to the developers that the tender was canceled, stating their bids had become time-barred and infructuous as they didn’t take any action for the bid period extension.
The bid cancellation follows the discovery of much lower tariffs in subsequent auctions by different States, and appears to be a deliberate move by UPNEDA to avoid paying power prices which now appear unjustifiably high.
“UPNEDA failed to issue the LOI for the reasons only known to it,” NSEFI said, adding the authority cannot cancel it at this stage unilaterally.
“There has been an increasing trend among the states towards cancellation or re-negotiation of the bids (e.g., power purchase agreement renegotiation by Andhra Pradesh, tariff discount negotiation by Punjab, and Dholera LoI cancellation by Gujarat), as per their convenience, making it difficult for companies to execute projects in India,” stated NSEFI. “This uncertainty will affect the foreign direct investment in the solar sector and therefore India’s renewable energy journey and targets.”
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It is amazing how much money is being “found” to build and own Solar Facilities… but none to build the equipment itself.
If these funds were utilized to build Ingot-Wafer-Cell-Panel Facilities, India and the National Solar Infrastructure would benefit the most.
A 1GWe Facility costs about US$500Million…. India needs 500GWe/yr Capacity if it wants to achieve Zero Pollution by 2050… or $250 Billion …. is this enough “food” for your appetite…???
“With the “Private Sector” fully committed to building the above Solar Manufacturing Infrastructure; let the GOI Finance the “Ownership” of PV Installation using AV (AgriVoltaics) on the 600,000 Farms in India with 250 Farms and 100KW each for a 15TW System supporting Zero Pollution by 2050. (See YouTube Channel zeropollution2050… one word…. it is ALL laid out there)….
In addition, the “well funded”(??) private Financial Market can then try to digest the Conversion of the Industrial (Steel, Cement, Glass, Chemicals etc..),Transportation (Land, Sea, Air), Commercial/Residential (HVAC, HouseKeeping etc..) Sectors from using Polluting Fuels to using Clean and Sustainable Solar Energy from the above 15TW AV System, Generating 18,000TWhrs/yr in 2050…. for ALL ENERGY NEEDS in India… potentially, ANOTHER, $20 Trillion by 2050 too….
The Private Sector must stay away from freezing their finances in PV Installations and much better Leverage their Funds into what goes into the Zero Pollution Future of India in the Manufacturing Sector, which is being “starved” as PV Installation Ownership is “eating away” most of the Finances… and Imports for Solar Equipment are ballooning Foreign Exchange Requirements….
As The Mahatma once said…. GIVE me Fish to Eat I will Eat Today… TEACH me how to Fish… I will Eat EVERYDAY….
Same here…..
* Invest in PV Installations… you will satisfy your NEEDS TODAY….
* Invest in Making the Equipment… and you will GROW EVERYDAY …
Perhaps these Cancellations are appropriate for the “big picture” of the Solar Industry… for a better and stronger Solar Future… and a Sustainable One at that too…!!!