India: Andhra Pradesh 500 MW PV tender oversubscribed 10-fold

According to Bridge to India, the first NSM bid under India’s new government has attracted enormous interest with 5.5 GW bid from 30 developers. Six, including SunEdison and Softbank, bid for the whole 500 MW. Five, meanwhile, have made bids for 200 MW.

The consultancy says 28 bidders will now move into a second round of, open online, bidding, expected in the next month. This is the first time open online bidding has been used in India’s solar sector, writes Bridge to India, which comments, "If similar bids in India for telecom spectrum and coal mine allocation are any indicator, this mechanism will lead to a further intensification of competition."

"Aggressive" tariffs of below INR 5/kWh are expected by some, although the consultancy says it remains skeptical in light of the high solar park infrastructure costs. Saying that, it adds that the recent tariffs of INR 5.09/kWh –INR 5.98/kWh seen in Punjab were "an eye-opener."

Other solar auctions are also said to be attracting a lot of attention, with the 420 MW tender in Rajasthan having reportedly already seen 80 developers expressing interest. The 420 MW is set to be spread across six 70 MW projects in Bhadla Solar Park Phase II under the NSM phase II, batch II, tranche I.