Government to Reverse Auction Wind-Solar Hybrid Project

The tender had received a tepid response from the industry with just Adani Green Energy and SB Energy bidding for the project.

The government has decided to go for a reverse auction for its first wind-solar hybrid tender for which two companies submitted their bid. Adani Green Energy and Softbank-backed SB Energy will compete for a total capacity of 840 MW.

“We will go for the reverse auction between the two bidders,” Anand Kumar, secretary at the ministry of new and renewable energy (MNRE) said. “The capacity for reverse auction will be reduced by 20% of what has been subscribed,” he said.

The tender had received a tepid response from the industry with just Adani Green Energy and SB Energy bidding for the project by the due date of November 20. Adani Green Energy submitted its bid for 600 MW capacity and SB Energy for 450 MW out of a total of 1200 MW.

The lack of response from the industry for the tender was due to the lower tariff ceiling which was later raised by 10 paise to Rs 2.70 per unit before the final submission date. There are apprehensions that the bid received during the reverse auction will not be competitive enough because there are only two players in the auction.

“If we receive reasonable bids, we will go ahead with awarding the capacity. Otherwise we can cancel them,” said Kumar.

The tender was initially floated for 2500 MW but was later brought down to 1200 MW.

Hybrid projects are supposed to bring the capital cost down with land optimization, transmission infrastructure, but some experts believe that there is hardly any land which is feasible for both wind and solar projects.

Source: ET