Tariff Rises to Rs 2.25/kWh in Rajasthan With NTPC’s 190 MW Solar Auction

Rising Sun Energy has won in the latest NTPC auction for developing 190 MW solar power project(s) in the Nokh Solar Park in Rajasthan

New Delhi-based independent power producer Rising Sun Energy has won with its bid in the latest NTPC auction for developing 190 MW solar power project(s) in the Nokh Solar Park in Rajasthan. According to industry reports, the firm was awarded the entire capacity of the tender i.e. 190 MW after it submitted the winning bid of Rs 2.25/kWh. Beating out eight other bidders in the range of Rs 2.47 and Rs 2.75/kWh, many of whom are established large-scale developers, and declined to reduce/ match their bids with the L1 bid submitted by the Delhi based IPP.

In January, NTPC had issued the tender for the selection of solar power developers for setting up of the 190 MW grid-connected solar PV power project at the Nokh Solar Park in Jaisalmer, Rajasthan. It was revealed that the park was being developed through Rajasthan Solar Park Development Company [i.e. Solar Power Park Developer (SPPD)] in Nokh Village in the Jaisalmer district of the state.

The last date for bid submission is February 10, 2021. And a pre-bid meeting was held on January 27, 2021, to address the concerns raised by the prospective bidders.

Interestingly enough, the tariff obtained in the latest tender is 12.5 percent higher than the previous tender closed in the state. SECI had received (a then) record low bid of Rs 2 per kWh in the auction seeking developers for developing 1070 MW solar projects anywhere in the state under Tranche-III.

The record low L1 bid was submitted by Saudi Arabian firm Al Jomaih Energy and Water Co and Sembcorp Energy India subsidiary Green Infra Wind Energy. Both submitted the L1 bid for 200 MW and 400 MW capacity respectively.

It is believed that the condition of developing a project anywhere and being developed inside a solar park is the reason for the increased tariff for the latest auction. Solar parks – which are designed with the objective of making it easier for developers to set up solar projects – usually being more expensive for developers when setting up projects.