Indian solar tender with manufacturing finally oversubscribed
Azure Power Solar PV Plant (Photo: Business Wire)
The Solar Energy Corporation of India (SECI) received bids for 8 GW of solar power projects linked with 2 GW of photovoltaics (PV) manufacturing capacity in a tender after its increased the solar electricity tariff cap.
The government solar agency extended the deadline for bids in the 7-GW solar tender several times this year as it failed to attract significant interest. It amended certain clauses to make the tender more attractive, including lifting the maximum tariff for the solar electricity from the projects to INR 2.93 (USD 0.041/EUR 0.037) per kWh, from INR 2.75/kWh previously.
Mercom India Research said today Indian companies Azure Power Global Ltd (NYSE:AZRE), Adani Green Energy Ltd (BOM:541450) and Navyuga Engineering Co have bid to develop 8 GW of PV projects and set up 2 GW of manufacturing capacity, which is 1 GW above the solar project capacity the tender seeks to award. Adani bid for 4 GW of power and 1 GW of manufacturing capacity, while each of the other two bidders proposed to establish 2 GW of solar parks and 500 MW of manufacturing plants.
The tariff-based reverse auction to determine the final awards will be held in the coming weeks, according to Mercom’s report. The solar projects will get 25-year power purchase agreements (PPAs).