May 10

Tariffs fall in Gujarat solar auction

Bengaluru: Gujarat’s second attempt to auction projects at Raghanesda Solar Park generated tariffs that were substantially lower than the first sale in January, which had been scrapped.

French utility Engie got 200 MW in Thursday’s auction by bidding Rs 2.65 per unit. State-owned Gujarat State Electricity Corporation Ltd. won 100 MW at Rs 2.68 per unit and Gujarat Industries Power Company Ltd. won 100 MW at Rs 2.68 per unit. Tata Power won 100 MW at Rs 2.70 per unit.

Gujarat Urja Vikas Nigam Ltd., the state distribution company, had cancelled the results of the first auction for these projects because the winning tariffs ranging from Rs 2.84 to Rs 2.89 per unit were considered too high.

This time, the discom reduced solar park charges by Rs 30 lakh per MW to bring down the tariffs by about 18 paise per unit.

“I feel 2.85 was itself an aggressive bet to begin with,” said a solar developer on condition of anonymity. “It all depends on the risks companies are taking – maybe they’re getting less return on capital.”

GUVNL also introduced a ceiling tariff of Rs 2.70 per unit.

While the January auction attracted bids for 1,250 MW, Thursday’s auction drew bids for 600 MW of the 700 MW offered.

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