Indian state wraps up 500 MW solar auction

The Indian state of Gujarat’s latest 500 MW solar auction has secured a winning bid of INR 2.20 ($0.03)/kWh, which JMK Research has partly attributed to the project sites and growing expectations that mono PERC module prices will fall 10-15% by 2022.

March 29, 2021 Uma Gupta

Image: NASA MODIS/Wikimedia Commons

From pv magazine India

Gujarat Urja Vikas Nigam Ltd.’s latest 500 MW solar auction has secured a winning bid of INR 2.20 ($0.03)/kWh, from the record-low INR 1.99/kWh recorded in the last 500 MW procurement round in December.

NTPC (150 MW), Sprng Energy (120 MW), Coal India (100 MW), and Tata Power’s TP Saurya unit (60 MW) have picked up an aggregate 430 MW at this rate, while SJVN won the remaining 70 MW of capacity at INR 2.21/kWh.

JMK Research has described the winning bid of INR 2.20 as particularly aggressive, given that the auction was held after the announcement of the basic customs duty levy of 40% on imported solar modules and 25% on solar cells, effective from April 1, 2022.

Analysts have attributed the comparatively lower tariffs to the “good ratings” of Gujarat's state electricity distribution company, the project locations, and rising anticipation that mono PERC module prices will fall by 10-15% to reach the $0.19/Wp range by 2022, excluding duties and taxes.

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