While SECI says the tariffs set for its solar projects are feasible, developers term it low for the solar power project execution
The Solar Energy Corporation of India’s (SECI) auction to set up a 50 MW solar project at the Dhodhainicha Solar Park in Maharashtra has been put off indefinitely as the Tata Power Renewable Energy showed up as the only developer interested in the bidding process.
Low solar tariff
According to reports, the tariff set at Rs. 2.93 per unit is too low for solar developers to execute the whole solar business. It is said that the solar tariff for the wind-solar projects of Rs. 2.60 per unit makes solar bidding even more unrealistic.
Apart from the low tariffs, solar developers have also cited the project deadline of 12 months for completion of the project which they consider to be too short to achieve it after signing the power purchase agreement (PPA).
Transmission issues have also been cited as one of the reasons behind the indefinite put off.
SECI solar projects delay
SECI has been extending its deadlines for bid submission to set up wind-solar hybrid renewable energy capacities. The fresh date to set up the1200 MW wind-solar hybrid renewable energy capacities has been scheduled for November 14, 2018. The solar projects have been postponed mainly due to lower rates as developers believe investing in these projects will yield low results. October saw another delay of an auction for solar manufacturing of around 10,000 MW for the fourth time.
SECI’s response to the delay
Commenting on the tariff issue, JN Swain, Managing Director, SECI said that the rate was feasible and that the hybrid wind-solar project was a new one hence some delays were expected. He added that tie-ups of solar developers to execute the projects jointly would also take time.