Tata Power, AlJomaih Winners in RUMSL’s 500 MW Neemuch Solar Park Auction

RUMSL’s third 500 MW auction continued to attract ever lower bids, as TP Saurya (Tata Power), and Saudi firm AlJomaih Energy and Water Company, pocketed the Neemuch park bids. While Tata Power won two parcels of 170 MW and 160 MW at Rs 2.14 and 2.149 respectively, Aljomaih won the remaining 170 MW with a final bid of Rs 2.15/kWh. RUMSL is a joint venture company of Madhya Pradesh Urja Vikas Nigam Limited (MPUVN), and Solar Energy Corporation of India (SECI).

These bids follow the last 450 MW RUMSL (Rewa Ultra Mega Solar Limited) solar auction that was won by NTPC Renewables (NTPC) and Talettutayi Solar Projects Nine (SolarArise) with bids of Rs 2.33/kWh and  Rs 2.34/kWh, respectively.

The first of the 1500 MW of of total auctions was held for the Agar Solar park, where the bids for 550 MW capacity saw Avaada Energy and O2 Power (through Beempow energy Private Limited) winning the bids with bids at Rs 2.45(200 MW) and 2.44 (350 MW) respectively.

The attractive bids, made after the government made it clear that they would have to take into account the impending duty structure from April 2022, are very attractive by all means, and indicate a positive mood among developers about the future. Of course, these bids already have assured buys, which ensures that the projects will proceed on schedule, unlike the many SECI sponsored auctions from 2020 that are still struggling to find discom buyers.

The results also mean that the going will continue to be tough for projects bid and won at over Rs 2.70 levels, as discoms will continue to expect lower prices going ahead.

These bids also raise expectations about the prices expect in the 1785 MW Rajasthan tender from SECI, results of which should be coming in soon too. The tender has already drawn a high response of over 10 GW worth of bids.