Bridge India

Gujarat auction gets a tepid result

Gujarat conducted e-auction for a 500 MW utility scale PV solar tender last week. Capacity has been won by four developers at tariffs between INR 2.98 – 3.06/ kWh – Kalthia Engineering (50 MW, INR 2.98), Gujarat State Electricity Corporation (GSEC) (150 MW, INR 3.00), Acme (100 MW, INR 3.06) and Azure (200 MW, INR 3.06). Losing bidders include Hero, Adani, Shapoorji Pallonji, Mahindra, Mytrah and Fortum.

  • Tariffs have gone up by 22% in 3 months because of the threat of safeguard duty;
  • Ministry of Power statement that developers would be expected to bear duties only as applicable on the date of auctions is being disregarded by them;
  • We expect little progress on over 11,700 MW of tenders stuck in pipeline until there is clarity on duty decision;

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