The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has scrapped an auction for 1 GW of solar power capacity due to the high level of quoted tariffs, Mercom Capital reports.
The tender was oversubscribed by 870 MW, with bids ranging between INR 3.48 (USD 0.051/EUR 0.043) per kWh and INR 3.55 per kWh. No specific reasons for the cancellation have been announced, but an UPNEDA official told the consultancy that the decision is due to the high tariffs offered. The unnamed official added that the targeted capacity has been cut in half and a tender will be launched for 500 MW.
The lowest tariff for solar power in India so far stands at INR 2.44 per kWh, received last year in a 500-MW tender in Bhadla, Rajasthan.
As reported previously, the lowest bid of INR 3.48/kWh in Uttar Pradesh's tender was quoted by Adani’s Mahoba Solar and Maheshwari Mining & Energy Pvt Ltd (MMEPL) for 250 MW and 20 MW, respectively. The highest successful bid of INR 3.55/kWh exceeds the INR-3.32/kWh winning tariff in an Uttar Pradesh auction by the Solar Energy Corporation of India (SECI) in June.
UPNEDA launched the auction for 1 GW of grid-connected projects in January. It amended the request for procurement (RfP) in April so as to include specific modifications to the competitive bidding guidelines.
(INR 10 = USD 0.145/EUR 0.125)
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