95% Decline In Solar Auction Activity In August
Uncertainty around GST, the pending antidumping case, DISCOM’s looking for developers to match the lowest possible tariff have all contributed to the freeze in solar auction activity in India
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Solar auctions saw the decline in the month of August in comparison to the robust activity in June 2017. The auctions by MWs (Megawatts) fell by 95 per cent in August with only 76 MW, as reported by Mercom Capital Group.
“Uncertainty around GST, the pending antidumping case, DISCOM’s looking for developers to match the lowest possible tariff have all contributed to the freeze in solar auction activity in India,” said Priya Sanjay, Managing Director of Mercom India.
The Solar tender announcements in the country increased by 15 per cent in August 2017 compared to July 2017 when 633 MW of solar were tendered. However, the think tank says that the tender announcements are meaningless without auctioning of these projects.
Amongst the major solar tenders were the 110 MW of Maharashtra State Power Generation Company (MAHAGENCO) and NTPC’s 241 MW solar tender carried out in 3 separate projects under domestic content requirement (DCR) category.
The Railway Energy Management Company Limited (REMCL) successfully auctioned 67.38 MW of rooftop solar projects for the Indian Railways where Mytrah Energy emerged as the biggest winner, winning projects totalling 30.87 MW. The company quoted the lowest tariff of Rs 2.39 kWh to develop 1.15 MW of rooftop solar for North Frontier Railways. Another major player, Azure Power, won projects totalling 25.26 MW.
Ujaas Energy received two orders from Jharkhand Renewable Energy Development Agency (JREDA) for the installation and commissioning of 8.5 MW of grid-connected rooftop solar PV projects in Jharkhand.
Among the cancelled projects was the Karnataka Renewable Energy Development Limited (KREDL) solar projects of 200 MW tender for the Pavagada Solar Park with plans to re-tender; the project was originally tendered in July 2017, as reported by Mercom.
However, in terms of the tender announcement, More than 36.4 MW of solar tenders were announced during the week ending September 1, 2017, up from just 5 MW of solar tenders unveiled a week earlier, despite continuing uncertainty around the ongoing anti-dumping investigation. The large tenders included 14 MW grid connected rooftop solar project of Assam Energy Development Agency’s Department of Science and Technology, 10 MW canal top solar project tender issued by West Bengal State Electricity Distribution Company (WBSEDCL) and others.