ACME, SAEL, Essar, Onward, NTPC REL Winners Of 1.2 GW SJVN Solar Tender

SJVN Limited has announced the winners of its 1.2 GW solar tender, in which included Acme Solar Holdings, SAEL Industries, Essar Renewables, Onward Solar Power, and NTPC Renewable Energy (NTPC REL), as the successful bidders at an average tariff of Rs. 2.52/kWh.

Under this tender, SJVN has allocated 300 MW each to Acme Solar, Essar Renewables, and SAEL Industries at a tariff of Rs. 2.52/kWh. Onward Solar secured 100 MW, while NTPC REL won 200 MW out of the 400 MW it bid for, at a tariff of Rs. 2.53/kWh, using the bucket-filling method.

The projects are to be located anywhere in India and must be connected to the interstate transmission system. SJVN will enter into a power purchase agreement (PPA) with the winning bidders for 25 years. The electricity generated will be sold to various purchasing entities across the country.

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These projects are expected to be ready only by 2026, after signing of PPAs.

The rates of Rs 2.52 indicate the impact of the new tariff and ALMM regime, whereby a further drop in prices looks difficult, despite very low international prices. Consider the fact that without tariffs or ALMM, prices would probably have breached the Rs 2 mark.

Either way, Rs 2.50 and thereabouts seems to be new benchmark for large solar tenders, while for Wind, it’s closer to Rs 3.00, and Hybrid, probably around Rs 3.50 would be very acceptable for now.

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As a first among PSUs, SJVN has also secured Rs 10,000 crore construction line of credit facilities for its upcoming renewable energy projects from a group of leading domestic and international financial institutions. It has set itself a target of 12,000 MW capacity by 2026. With an existing pipeline of 7.2 GW, the firm remains confident it will get there despite some delays on projects recently.