15 venture builders on the verge of commissioning their utility-scale solar energy tasks within the Indian state of Uttar Pradesh not too long ago acquired a shock when the state’s regulator requested them to cut back the tariff for his or her tasks.
Aggressive auctions held in 2015 in Uttar Pradesh noticed utility-scale solar energy tasks allotted to fifteen builders in a tariff vary of ₹8.60/kWh (13¢/kWh) and ₹7.02/kWh (11¢/kWh). All these tasks are actually nearing completion and 14 of the 15 builders have been requested to match the bottom bid of ₹7.02/kWh. This implies a discount of as much as 18% for the very best profitable bidder.
It’s a near-standard apply to ask bidders to match the bottom acquired bid however this often occurs instantly after the public sale is full and never a few years later when the venture builders have made all investments and are able to feed the grid. The state of Tamil Nadu not too long ago carried out this apply for its 1.5 gigawatts photo voltaic public sale. Many of the venture builders agreed to match the bottom bid with none points.
Most auctions in India don’t see a big band of bids, particularly successful bids. Nonetheless, Uttar Pradesh can’t be in contrast with states like Rajasthan, Tamil Nadu, Gujarat or Karnataka and Andhra Pradesh. Uttar Pradesh isn’t among the many pioneering states in solar energy improvement and thus lacks infrastructure and regulatory help that’s out there to builders in Rajasthan or Gujarat.
The current public sale in Rajasthan, for instance, noticed immense competitors amongst builders who quoted India’s lowest-ever tariff of ₹2.44/kWh (3.8¢/kWh). This was doable as a result of land for venture had already been assigned and purchased, as a result of transmission infrastructure for the venture was already out there and being park of a photo voltaic park, the venture developer had entry to different help infrastructure that might be wanted to arrange the venture.
None of those situations have been out there in Uttar Pradesh on the time of the public sale. Moreover, the facility buy agreements signed in Uttar Pradesh are for under 12 years in contrast the country-wide commonplace of 25 years.
The timing of this choice by the regulator has jeopardised the funding of venture builders. As they close to commissioning date they could have restricted selection between accepting the choice or difficult it in a tiring courtroom case.
15 venture builders on the verge of commissioning their utility-scale solar energy tasks within the Indian state of Uttar Pradesh not too long ago acquired a shock when the state’s regulator requested them to cut back the tariff for his or her tasks.
Aggressive auctions held in 2015 in Uttar Pradesh noticed utility-scale solar energy tasks allotted to fifteen builders in a tariff vary of ₹8.60/kWh (13¢/kWh) and ₹7.02/kWh (11¢/kWh). All these tasks are actually nearing completion and 14 of the 15 builders have been requested to match the bottom bid of ₹7.02/kWh. This implies a discount of as much as 18% for the very best profitable bidder.
It’s a near-standard apply to ask bidders to match the bottom acquired bid however this often occurs instantly after the public sale is full and never a few years later when the venture builders have made all investments and are able to feed the grid. The state of Tamil Nadu not too long ago carried out this apply for its 1.5 gigawatts photo voltaic public sale. Many of the venture builders agreed to match the bottom bid with none points.
Most auctions in India don’t see a big band of bids, particularly successful bids. Nonetheless, Uttar Pradesh can’t be in contrast with states like Rajasthan, Tamil Nadu, Gujarat or Karnataka and Andhra Pradesh. Uttar Pradesh isn’t among the many pioneering states in solar energy improvement and thus lacks infrastructure and regulatory help that’s out there to builders in Rajasthan or Gujarat.
The current public sale in Rajasthan, for instance, noticed immense competitors amongst builders who quoted India’s lowest-ever tariff of ₹2.44/kWh (3.8¢/kWh). This was doable as a result of land for venture had already been assigned and purchased, as a result of transmission infrastructure for the venture was already out there and being park of a photo voltaic park, the venture developer had entry to different help infrastructure that might be wanted to arrange the venture.
None of those situations have been out there in Uttar Pradesh on the time of the public sale. Moreover, the facility buy agreements signed in Uttar Pradesh are for under 12 years in contrast the country-wide commonplace of 25 years.
The timing of this choice by the regulator has jeopardised the funding of venture builders. As they close to commissioning date they could have restricted selection between accepting the choice or difficult it in a tiring courtroom case.
