SECI Auction Receives Only 2 Bids,Tariff Unchanged

Solar tariffs endured little changed from June in an auction that appealed only two bidders, forcing the Solar Energy Corporation of India to scale down allocation to 40% of the total offered.

SB Energy, backed by Japanese giant SoftBank, won 330 MW at Rs 2.65 per unit, while Chennai-based GRT Jewellers won 150 MW at Rs 2.53 per unit, as per sources. Tariffs in June were in the range of Rs 2.54-2.55 per unit.

The tariff ceiling had been set at Rs 2.65 per unit, the same as in the June auction. Nevertheless, unlike last time when the tender was oversubscribed, bids were acknowledged only from two companies, forcing SECI to reduce allotment to 480 MW from 1,200 MW.

This is the first solar tender by SECI to get such a poor response, believes experts. They said solar developers already have a large pipeline after 28.5 GW worth of projects were auctioned in the past 18 months.