India

India

India's developers back away from latest federal auction

After being oversubscribed in all past federal auctions except one, the latest seventh tranche tender for 1.2GW saw bids of only 0.6GW

ReNew Power was one of just four developers to bid a total of 600MW in to the 1.2GW auction round
ReNew Power was one of just four developers to bid a total of 600MW in to the 1.2GW auction round

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Only four players participated in the latest bid with Adani Green Energy bidding for 250MW, Engie for 200MW, and Sprng Energy and Renew Power bidding for 100MW and 50MW, respectively.

The results have been a surprise for the government as the last bid in February (round six) was oversubscribed by nearly 100%.

Developers argued the ceiling tariff of INR 2,830/MWh ($40.46/MWh) is the main reason for the tepid response.

With high wind potential states like Gujarat and Tamil Nadu already saturated with projects and facing land allocation challenges, the tariff ceiling makes projects in low wind areas unviable.

It appears that the bids received for the tender are from players who already have land available to them in Gujarat.

There is no decision from the government about the final award. "We have not taken any decision yet on whether we will issue this tender again or not," said a senior government official.

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