India : SB Energy wins SECI’s 200MW auction in Karnataka

SB Energy, the joint renewable energy venture of Japan’s SoftBank, Taiwan’s Foxconn and Bharti Airtel has won the entire 200 MW of solar projects auctioned by Solar Energy Corporation of India (SECI) on Friday, at a tariff of Rs 2.82 per unit. 

The projects have to be built at the Pavagada Solar Park in Karnataka. There was only one other bidder, Tata Power Renewable Energy, which sought one paise more per unit. 

The tariff is a shade lower than that reached at the last auction held for projects at the same location. In end-March, Karnataka Renewable Energy Development Ltd (KREDL), the state’s nodal agency for renewable energy, held an auction for 1,200 MW of projects at the same venue, at which the winning tariffs were in the range of Rs 2.91-2.93 per unit. It was also a disappointment for KREDL since, of the 1200 MW auctioned, bids for only 550 MW were received. KREDL, however, decided not to re-issue the tender but to make the allotments to the winning bidders at whatever prices they had suggested. 

The better showing in SECI’s auction is mainly attributed to SECI’s superior reputation, being an arm of the ministry of new and renewable energy, which would enable winning developers to get financing at lower cost. 

Source :

Smart Grid Bulletin July 2019

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