UPNEDA cancels 1000 MW solar auction due to high tariffs: Report

The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has cancelled 1000 MW solar auction due to the high level of quoted tariffs.

UPNEDA held the reverse solar auction on July 11, at which bids ranged between Rs 3.48 per kWh and INR 3.55 per kWh. This was more than a rupee higher than the lowest tariff of Rs 2.44 per unit recorder earlier.  The agency has not announced any specific reason for the cancelation, however, reports claims that the decision was taken due to the high tariffs offered.

Mercom Capital citing sources reports that the targeted capacity has been cut in half and a tender for 500 MW solar capacity will be launched soon.

The biggest winners for the UPNEDA’s solar auction had been Acme Solar (300 MW), the Adani Group (250 MW) and Azure Power (160 MW).

UPNEDA launched the auction for 1000 MW of grid-connected solar projects in January this year. It amended the RfP in April so as to include specific modifications to the competitive bidding guidelines.