The GRIDCO has now signed a 25-year PPA to develop the remaining 75 MWs with Aditya Birla Renewables.
The capacity was tendered by GRIDCO in April 2018 and was oversubscribed by almost four times.
According to Mercom’s India Solar Project Tracker, in the auction, Aditya Birla Renewables had quoted ₹2.79 (~$0.0406)/kWh to develop 75 MW of solar capacity. Sukhbir Agro bid ₹3.19 (~$0.0464)/kWh to develop 25 MW, Gupta Power quoted the same tariff to develop 20 MW. Eden Renewables quoted ₹3.19 (~$0.0464)/kWh to develop 50 MW and ACME Solar quoted a tariff of ₹3.20 (~$0.0466)/kWh to develop another 50 MW.
Previously, Mercom reported that the tariff above ₹3 (~$0.0429)/kWh mark was not financially feasible for GRIDCO and any tariffs over that could be canceled.
As the difference between L1 and the other bidders was more than ₹0.40 (~$0.0057)/kWh, GRIDCO asked the other bidders to match the lowest tariff of ₹2.79 (~$0.0406)/kWh. According to Mercom’s sources, despite the plea made by GRIDCO, the bidders denied to reduce the tariff rates. This, in turn, led to the cancellation of 125 MW of solar projects, and the capacity is now likely to be retendered by GRIDCO.
An official at Sukhbir Agro, whose 25 MW has been canceled, commented saying, “We have denied matching the L1 price as it is too low, and the other players are in the same price range”.
The solar industry is trying to overcome the safeguard duty and GST, but government agencies continue to insist on lower tariffs which developers feel are unviable.
NEWS SOURCE: Mercom India