Thirteen qualified bidders participated enthusiastically over ten hours in the online auction for Shajapur Solar Park on July 19, 2021. NTPC Renewable Energy Limited offered the least tariff of 2.35 for Unit 1 of 105 MW unit and 2.33 for Unit 2 of 220 MW unit.
Talettutayi Solar Projects Nine Private Limited, a wholly owned subsidiary of Solar Arise India Projects Private Limited offered the least tariff of 2.339 for Unit 3 of 125 MW. One week ago, the auction for Agar Solar Park resulted in a similar remarkable success with Avaada Energy Private Limited offering the lowest tariff of 2.459 for Unit 1 of 200 MW and Beempow Energy Private Limited, a wholly owned subsidiary of O2 Power Private Limited offering the lowest tariff of ? 2.444 for Unit 2 of 350 MW. The auction for 500 MW Neemuch Solar Park is expected in August 2021.
These are the lowest ever tariff offered by developers for solar projects in India using Indian manufactured solar panels. The three Madhya Pradesh auctions unlock a new era of affordable tariff for projects developed with Indian manufactured panels without any viability gap subsidy, under the new Approved List of Model Manufacturers. This landmark initiative led by Madhya Pradesh is a defining milestone in the Government of India’s vision for AatmaNirbhar Bharat, in the field of renewable energy.
The tariff is ~30% lower than the lowest solar power tariff achieved by the State so far and about ~40% lower than the weighted average solar power purchase cost of the State. With these tariffs achieved in Agar Shajapur solar parks, state Discoms would save ? 4,685 crore over 25 years, which is about ? 2,018 crore in present value discounted terms ( as compared to state average power purchase cost).
The Solar Parks will lead to development of relatively remote districts and will build new transmission infrastructure without any investment by the Government of Madhya Pradesh. The State has again been successful in attracting foreign and domestic reputed developers, thereby further deepening its reputation as an attractive investment destination for renewable energy and mobilizing about ? 3,500 crore private investment.
The project demonstrates excellent partnership between State and Government of India agencies as well as with multilateral organizations such as International Finance Corporation (IFC) as the transaction adviser and World Bank as loan provider for transmission infrastructure. RUMSL in coordination with IFC has uniquely structured the project, prepared bankable project agreements, introduced several innovations, seek regulatory clearance for enhancements over the national guidelines, integrated Indian Railways as a second power procurer, managed a wide group of stakeholders through extensive consultations and negotiations, reviewed land procurement and transmission to ensure coordinated progress, and provided comprehensive analytical and implementation support. World Bank financing for the solar park infrastructure through its loan to IREDA helped to keep solar park charges low and has enhanced the credibility of the project amongst the solar developers across the world.
Minister for Renewable Energy Hardeep Singh Dang said that the above results have been made possible with the extensive collaboration of the Government of Madhya Pradesh (GOMP) and Government of India (GOI) and their organizations.