Nifty99000 100%

Sensex99000 100%

Article rating: 5.0
Article rating: 4.5
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 3.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.3
Article rating: No rating
Article rating: 3.8


Solar power auction sees 98% fall in November

Author: IANS/Thursday, December 14, 2017/Categories: Energy

Solar power auction sees 98% fall in November

New Delhi - The solar power auction in November saw a 98% drop with only 5 MW auctioned against 270 MW in October, a report said.

It also pointed out that total solar project tendered also saw a steep decline with 300 MW offered in November against 400 MW in October.

"The solar capacity tendered across the country during the month fell by 25% to 300 MW compared to the October 2017 total and the amount of solar auctioned dropped by 98% to just 5 MW," said the report by clean energy consulting firm Mercom Capital Group.

According to experts, one of the reasons for this steep fall is rise in Goods and Services Tax (GST) slab on solar equipment and the anti-dumping case, where Indian manufacturers demand drop in duty to compete against the very-low priced equipment offered by Chinese exporters.

Also, the All India Solar Industries Association said that GST has led to 10-12% rise in overall cost of solar projects. In August, Union Power Minister Piyush Goyal said clarified that 5% GST will be applicable on solar equipment and the government cannot do anything about it.

Mercom Capital Group CEO Raj Prabhu said: "Hopefully, tender and auction activity has bottomed out.

"The GST issue is almost behind us and the government is asking Discoms to refrain from PPA renegotiations, even though the anti-dumping case is still looming."

As per the report, the largest tender seen in November was by Karnataka Renewable Energy Development Ltd (KREDL), the renewable energy implementing agency in the southern state, which re-tendered 200 MW of solar power to be developed at the state's Pavagada Solar Park.

The only solar auction in November was by Solar Energy Corporation of India (SECI) that auctioned a 5 MW grid-connected solar PV project under the National Solar Mission Defence viability gap funding programme for an ordnance factory in Uttar Pradesh's Kanpur. 

Under the auction, Giriraj Renewables Pvt Ltd emerged as the successful bidder by quoting a tariff of Rs 4.18 per kWh.

According to Mercom Group, the cumulative solar installations in India surpassed 17 GW as of September 2017, with over 7 GW installed in the first nine months of the year.

"Following the recent lull in tender activity, Ministry of New and Renewable Energy (MNRE) revealed that it is preparing to announce a spate of tenders for solar projects over the course of four months starting in December 2017," the report said, adding these aim to help the government reach its goal of installing 100 GW of solar capacity by 2022.

The MNRE says it will work alongside states to announce tenders needed to reach 20 GW of ground-mounted capacity in solar parks in 2017-18. Of the 20 GW, 3.6 GW have already been tendered while another 3 GW were set to be tendered in December, followed by 3 GW in January 2018, 5 GW in February and 6 GW in March. Another 30 GW is expected to be tendered in 2018-19 with 30 GW to follow in 2019-20.

Print Rate this article:
No rating

Number of views (150)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free