Winning tariffs in Gujarat’s latest solar reverse auction showed significant increase over those in its last auction in September last year, lending further credence to the view that solar tariffs have bottomed out.
The lowest bid in the 500 MW auction conducted by Gujarat Urja Vikas Nigam Ltd (GUVNL) on Wednesday came from Kalthia Engineering and Construction Ltd, which sought and won 50 MW at a tariff of Rs 2.98 per unit. Kalthia is a Gandhinagar-based group, with diversified interests including heavy engineering, construction, renewable energy and hospitality.
Other winners were Gujarat State Electricity Corporation (GSECL), which has also turned developer, and which won 150 MW at Rs 3 per unit, Acme Solar Holdings, which won 100 MW at Rs 3.06 per unit and Azure Power, which got 200 MW at the same price of Rs 3.06 per unit.
In the last solar auction held by GUVNL in September 2017, also for 500 MW, winning tariffs had varied between Rs 2.65 and Rs 2.67 per unit. GSECL and Azure Power had been among the winners in that auction as well, picking up 75 MW at Rs 2.66 per unit, and 260 MW at Rs 2.67 per unit respectively. This amounts to a 33-39 paise increase in solar tariff in the same state within just six months. Read More…