The latest solar auction for 1000 MW held by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) saw the winning tariffs at Rs 3.48-3.55 per unit.
From the record low of Rs 2.44 per unit, the solar power tariffs have risen by more than one rupee in the latest auction. Those from the industry say the concerns about the land acquisition in Uttar Pradesh have affected the rates in the auctions.
The latest auction for 1000 MW held by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) saw the winning tariffs at Rs 3.48-3.55 per unit. This tariff is the highest in the auctions that were held in recent times.
Earlier in the month of June, the solar auction of 275 MW in UP was conducted by Solar Energy Corporation of India (SECI) which saw the winning bid at Rs 3.32 per unit.
The locations for the projects were distributed by the UPNEDA in different parts of the state. The agency has not allowed more than 50 MW at any particular spot. This led to the variations in the winning tariffs in the auction.
The biggest overall winner was Acme Solar, which got 300 MW, half the amount at Rs 3.48 per unit and the other half at Rs 3.55 per unit; followed by Adani Group-owned Mahoba Solar, which got 250 MW at Rs 3.48 per unit; and Azure Power, which got 160 MW at Rs 3.55 per unit.
“Acquiring land and completing projects are difficult in Uttar Pradesh, and the tariffs are a reflection of this,” said Vinay Rustagi, managing director of solar consultancy Bridge To India.
The tariff is even higher this time because UPNEDA conducted the auction and not a Central government agency like SECI. “Payments from UP discoms are also a problem, and their ratings are poor,” said Rustagi. “The state also has a reputation for renegotiating solar tariffs,” he added.