Tariffs Drop at NTPC’s Solar Auction

All the winners include Sprng Energy, Ayana Renewable Power, and SB Energy Solar. The winners at the auction got 250 MW each.

In a 750 MW auction conducted by NTPC for projects at Ananthapuram Solar Park in Andhra Pradesh the tariffs fell to Rs 2.72-2.73 per unit.

All the winners include Sprng Energy, Ayana Renewable Power, and SB Energy Solar. The winners at the auction got 250 MW each.

The tariff price quoted by Sprng Energy is Rs 2.27 per unit whereas Ayana and SB Energy both sought a tariff of Rs 2.73 per unit.

Sprng Energy is already developing 220 MW of solar and 550 MW of wind energy projects in India. Actis LLP, its backers has earlier financed Ostro Energy which has 1100 MW of renewable energy projects added to its portfolio.

Similarly, SB Energy has 350 MW of commissioned solar power in Andhra Pradesh. It is also developing 400 MW of projects in Rajasthan. However, for Ayana Renewable Power this 250 MW project will mark its debut in India market.

The total number of bidders who participated in the NTPC auction was 11. The response and the fall in Tariffs is seen as a positive outcome form the recent auctions.

Earlier in 2017 NTPC auctioned 250 MW at Kadapa Solar Park in Andhra Pradesh which saw the tariff of Rs 3.15 per unit, a record low at the time. The current auction by the company is first of its kind in a year.

However, with the increase in costs of solar panels the solar tariff has also shown upward trends. Given that 90% of the panels used in India are imported and the uncertainty in the local manufacturing, solar tariffs may climb upwards in future.