Four solar project developers – Fortum Solar (250 MW), ACME Solar (250 MW), Sitara Solar (100 MW), and Palimarwar Solar (40 MW), have quoted the lowest tariff of ₹2.48 (~$0.0349)/kWh in the auction held by SECI for 750 MW of solar power projects which are slated to be developed in Rajasthan.
Apart from them, ReNew Power quoted a tariff of ₹2.49 (~$0.349)/kWh to develop 360 MW but will be awarded only 110 MW due to the bucket-filling method applied to the awarded capacities in reverse auctions.
The upper tariff ceiling was ₹2.68 (~$0.0375)/kWh for this auction.
Recently, Mercom reported that the 750 MW solar tender floated by SECI was oversubscribed by 1,620 MW. Bids totaling 2,370 MW were submitted in response to the tendered capacity of 750 MW.
“We are happy with the discovered tariff. Just two days ago, the lowest tariff discovered in another SECI auction was ₹2.55 (~$0.035)/kWh. The presence of aggressive bidders in the auction made it more competitive,” one of the winners of this auction told Mercom.
When asked about the reasons behind such low rates when most auctions have thrown up figures above ₹2.50/kWh, a SECI official said, “In this auction, modality is slightly different. The procurer is entirely the state of Rajasthan. The state has great transmission infrastructure and there are ample substations unlike other areas in India where substations are few and far apart. The procurer is ensuring transmission and cheap land is available in areas with high solar irradiance. All these combined to bring the cost down.”
The L1 tariff discovered in this auction is ₹0.07 (~$0.00099)/kWh lower than the recent SECI auction for 1,200 MW of ISTS-connected Solar projects where ReNew Power has emerged as the L1 bidder by quoting the lowest tariff of ₹2.55 (~$0.035)/kWh to develop 300 MW.
SECI had tendered the capacity in August 2018, and the bid submission deadline was extended in October 2018.
The projects will be developed on a build-own-operate basis. The scope of work includes acquiring the land, developing the project, connectivity, and long-term open access.
The projects should be designed for interconnection with the nearest substation at a voltage level of 33 kV or above. The maintenance of the transmission system up to the interconnection point will be the responsibility of the successful bidder.
SECI will enter into a 25-year long power purchase agreement with the developers. The projects must achieve financial closure within 12 months from the effective date of the PPA. The successful developer must demonstrate the possession of the entire land identified for the project within 12 months from the effective date of the PPA.
Source- Mercom India