SECI Solar Auction Gets Good Response, Auctions 1,200 MW Solar Projects

Solar Energy Corporation of India has auctioned 1,200 MW solar projects, attracting much better response from developers than other recent auctions at much-lower tariffs, because it allowed developers to pass on any increase in costs due to safeguard or any other duty.

Softbank-backed SB Energy, AMP Energy and French state-run power major EDF won 600 MW, 100 MW and 300 MW, respectively, at a tariff of Rs 2.50 per unit, while Renew Power won 200 MW at Rs 2.51 per unit.

The renewable energy ministry's nodal agency for solar and wind auctions received bids for 3500 MW in the auction that had set a ceiling tariff of Rs 2.78 per unit.

The winning tariffs are significantly lower than the winning tariff of Rs 2.71 per unit at the previous auction held by SECI in November last year.

Industry sources attributed the success of the auction to the decision to allow developers, for the first time, to pass on any increase in costs due to safeguard duty or any other duty through an appropriate increase in tariff as part of the terms and conditions.

In the earlier auctions, while setting its ceiling tariff SECI had not taken into consideration the likely rise in costs for developers due to the safeguard duty that was imposed on solar panels and modules a year and a half ago.

This was the third issuance of this tender because of poor response in earlier attempts.

Only 960 MW was allotted in the November auction while the earlier auction in August attracted only two bidders for 480 MW.