Lowest bid in Andhra Pradesh solar auction at INR 2.72/kWh

Indian power producer NTPC Ltd (BOM:532555) has released the results of a recent tender for 750 MW of photovoltaic (PV) parks in Andhra Pradesh, which attracted bids as low as INR 2.72 (USD 0.041/EUR 0.034) per kWh.

India-based Sprng Energy, backed by private equity firm Actis, Ayana Renewable Power and Japan’s SB Energy were announced as winners in the competitive process for the construction of solar plants within the Ananthapuramu Ultra Mega Solar Park in Andhra Pradesh. Each of the three companies has secured a 250-MW block.

Sprng Energy and Ayana placed bids of INR 2.72 per kWh and INR 2.73 per kWh, respectively, each targeting one block. SB Energy offered INR 2.73 per kWh for 750 MW of capacity, but got the one 250-MW block available.

Among the participants in the tender were also Acme Solar, ReNew Power, Fortum Solar, Shapoorji Pallonji and Tata Power (BOM:500400), but they did not win any capacity.

According to consultancy Mercom Capital, winning tariffs have grown 12% since May 2017. Its CEO Raj Prabhu explained that the upward trend reflects the higher module prices, adding that “this auction gives a taste of things to come if a safeguard duty is imposed in the future.”

(INR 10 = USD 0.149/EUR 0.125)

Choose your newsletter by Renewables Now. Join for free!