Connect with us

Hi, what are you looking for?

CleanTechnica

Clean Power

Indian State Auctions 6.4 Gigawatts Of Solar At 3.68¢ Per kWh

The Southern Indian state of Andhra Pradesh auctioned 6.4 gigawatts of solar power capacity under a recent tender. The high response to the tender came as a surprise to many industry watchers.

Andhra Pradesh recently auctioned 6.4 gigawatts of solar power capacity meant to supply electricity to farmers. The tender offered developers a capacity of 300 megawatts and more in multiple solar power parks spread across the state.

Participation in the tender was highly concentrated, with only five developers submitting bids to develop projects. However, the tender was oversubscribed by 2.3 times as developers offered to set up as much as 14.3 gigawatts of capacity.

Adani Green Energy, one of India’s leading renewable energy companies, submitted bids to develop a 3 gigawatt capacity. A little-known local EPC contractor secured rights to develop 2.2 gigawatts. India’s largest power generation company — NTPC — secured 600 megawatts, while Torrent Power, a private company in the power sector, and HES Infra, a construction company, each bid for 300 megawatts.

These companies submitted tariff bids of Rs 2.47 to 2.58 (3.52¢ to 3.68¢) per kilowatt-hour.

All power generated from these projects will be used to meet agricultural demand in the state. The duration of power purchase agreements for these projects will be 30 years compared to the usual 25 years for projects of similar size.

Most leading developers stayed away from this tender given the recent experience with the Andhra Pradesh government. The state had refused to pay developers at the tariff agreed upon in power purchase agreements citing the decline in consequent tenders. This affected around 7.5 gigawatts of operational and under-construction solar and wind power projects.

The lack of trust towards the state government is being seen as one of the reasons for many developers staying away from the auction and bidders quoting tariffs at a premium of up to 29% to recent lows discovered in auctions of other states.

 
 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica member, supporter, or ambassador — or a patron on Patreon.
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

New Podcast: Forecasting EV Sales And EV Battery & Metal Prices — Interview with BloombergNEF's Head of Clean Power Research

Written By

An avid follower of latest developments in the Indian renewable energy sector.

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Batteries

One of India’s leading renewable energy companies has secured approval to set up production facilities for solar cells and modules and lithium-ion batteries. ReNew...

Clean Power

India will soon issue tenders for production and procurement of hydrogen from renewable energy sources, India’s minister for renewable energy revealed. According to media...

Clean Power

Ending years of speculations about its listing at stock markets, one of India’s leading renewable energy companies — ReNew Power — has announced plans...

Clean Power

Indian wind energy generator Continuum Wind Energy is planning to issue its first green bond with backing from the International Finance Corporation. According to...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.