NTPC’s Ananthapuram Solar Park Auction tariffs floated at Rs 2.8 per unit

Earlier, in the last weeks of March, the bids in the auction of 500 MW were in range of Rs 2.98-3.06 per unit. However, dismayed with the tariff rates, the government of Gujarat cancelled the auction and may re-issue new tenders soon.

In a latest auction for 750 MW at Ananthapuram Solar Park in Andhra Pradesh by NTPC the tariffs were floated at Rs 2.79-2.80 per unit.

Although the tariffs are less than what was offered at solar auctions conducted so for this year, however it is still relatively higher than the record low.

Earlier, in the last weeks of March, the bids in the auction of 500 MW were in range of Rs 2.98-3.06 per unit. However, dismayed with the tariff rates, the government of Gujarat cancelled the auction and may re-issue new tenders soon.

Similarly, in February two auctions were conducted by Karnataka that saw the tariffs of Rs 2.94-2.97 per unit and Rs 2.91-2.93 per unit respectively. Interestingly, the second auction of 1,200 MW at the Pavagada Solar Park didn’t see enough subscribers

Furthermore, the state of Maharashtra also postponed 1000 MW auction four times because it was undersubscribed.

Earlier in 2017 NTPC auctioned 250 MW at Kadapa Solar Park in Andhra Pradesh which saw the tariff of Rs 3.15 per unit, a record low at the time. The current auction by the company is first of its kind in a year.

However, with the increase in costs of solar panels the solar tariff has also shown upward trends. Given that 90% of the panels used in India are imported and the uncertainty in the local manufacturing, solar tariffs may climb upwards in future.

Source: ET