Four developers emerged winners in the reverse auction of 1.2 GW of Interstate Transmission System (ISTS) connected solar projects, conducted by the NTPC. The auction saw the lowest winning bid of INR 2.43/ kWh.
Winners included O2 power (400 MW), Tata Power (370 MW), Azure Power (300 MW), and AMP Energy (100 MW).
Commenting on the auction results, JMK Research stated: “The tariffs seen in the last two auctions, i.e., earlier SECI 2 GW with INR 2.36/kWh tariff and this one are highly aggressive. The low tariff trends can be a desperate situation wherein developers are looking to take advantage of the current situation wherein only safeguard duty of 14.9% is applicable.”
JMK cited two possible reasons for such low tariffs: “Auctions completed before a formal notification of basic customs duty (BCD) applicability will get a passthrough under “Change In law” provision.
“The module prices are also likely to fall further with the increasing gap in the demand-supply situation in the next few months due to slowdown triggered by Covid-19 pandemic.”
According to the JMK Research price tracker, in January-July 2020 period, prices of multi-crystalline modules have fallen by more than 15% in the Indian market.
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