Rewa Ultra Mega Solar Power Project receives sub Rs 4 per unit bids

[proud_indian]

Rewa Ultra Mega Solar Power Project receives sub Rs 4 per unit bids

Manu Srivastava, principal secretary, new and renewable energy, Madhya Pradesh government told ET that Rs 4 per unit barrier has been breached by Rewa project even before auction.
Sarita C Singh | ET Bureau | February 08, 2017, 19:02 IST

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New Delhi: Madhya Pradesh government's Rewa ultra mega solar park has received the lowest bid of Rs 3.59 per unit. The tariffs are set to reduce further as the reverse e-auction for the 750-mw solar project are set to start on Thursday.

Manu Srivastava, principal secretary, new and renewable energy, Madhya Pradesh government told ET that Rs 4 per unit barrier has been breached by Rewa project even before auction.

According to the bidding rules, the lowest initial tariff would be the base price for the reverse auction. Rewa ultra mega solar, a 50:50 joint venture of Madhya Pradesh Urja Vikas Ltd and Solar Energy Corp of India will sell the electricity produced to Madhya Pradesh utilities and Delhi Metro Rail on an open access basis.

http://energy.economictimes.indiati...ject-receives-sub-rs-4-per-unit-bids/57043157

@nilgri

your thoughts

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[Nilgiri]

Thats pretty crazy low tariff rate. It will bring down prices in upcoming bids too now that this precedent has been set.

 

[Śakra]

I can't wait until the Ultra Mega Super Giga Massive YUGE solar power projects come!

 

[proud_indian]

Thats pretty crazy low tariff rate. It will bring down prices in upcoming bids too now that this precedent has been set.

Last year If I can remember correctly Sun Ediston bid @ 4.60 INR then some experts said this could be the bottom of solar pv tariffs in India for a while but now this.

this would help us achieve 100 gw solar by 2022

I am loving it.

I can't wait until the Ultra Mega Super Giga Massive YUGE solar power projects come!

they have been already coming since last two years

wake up

@Śakra

India's solar power capacity crosses 9 GW | The Indian Express

 

[Avon]

Jeez....that's very low, anything above 4 is good but anything below that is not good from business point of view for most of corporates who are heavly investing in Indian solar market.

 

[proud_indian]

Jeez....that's very low, anything above 4 is good but anything below that is not good from business point of view for most of corporates who are heavly investing in Indian solar market.

you are right to an extent but they must have done their cost benefit analysis before submitting their bid.

 

[Avon]

you are right to an extent but they must have done their cost benefit analysis before submitting their bid.

True but I was talking about private companies ,the bidder here are two govt owned companies, private companies who are investing are expecting a better return,4.6 fr many who too low , wonder how private companies would react to this bidding price now.

 

[proud_indian]

True but I was talking about private companies ,the bidder here are two govt owned companies, private companies who are investing are expecting a better return,4.6 fr many who too low , wonder how private companies would react to this bidding price now.

I think you have raised a valid point

 

[YogaMudra]

True but I was talking about private companies ,the bidder here are two govt owned companies, private companies who are investing are expecting a better return,4.6 fr many who too low , wonder how private companies would react to this bidding price now.

They would react by increasing operational efficiency and eliminating waste, so that customers get cheap electricity.

Necessity is the mother of all invention.

 

[Śakra]

they have been already coming since last two years

I'm just teasing the strange naming scheme "Ultra mega". It kinda sounds like children are coming up with it. Better to call it Megapower plants

 

[proud_indian]

I'm just teasing the strange naming scheme "Ultra mega". It kinda sounds like children are coming up with it. Better to call it Megapower plants

You are right they sound cheesy to me as well but they are what they are.

 

[proud_indian]

@Nilgiri @anant_s @Avon @Śakra

Madhya Pradesh solar bids bottom out at Rs2.99 per unit in reverse auction

The reverse solar auction assumes significance given the comparison with conventional sources of electricity such as coal

Utpal BhaskarMayank Aggarwal​

India’s demand for renewable energy is expected to grow by seven times in 2035, according to the latest BP Energy Outlook, which means the share of renewable energy in the country’s fuel mix will increase from 2% to 8% in 2035.

Photo: Bloomberg

New Delhi: Is Rs3 per kWh the new normal for Indian solar power tariff? The ongoing auction for world’s largest solar power plant in Madhya Pradesh heralds the trend with tariffs hovering at a low of Rs2.99 per unit in the ongoing reverse auction for the 750 mega watt (MW) capacity.
The auction, which is still on since Thursday, saw prices plunge to Rs 2.99 per unit for all the three packages of 250 MW each. Of the 20 initial bidders, the firms still in the fray include Green Infra Wind Power Project Ltd, SBG Cleantech Ltd and Enel Green Power SpA.
While Green Infra is promoted by Sembcorp Industries Ltd, SBG Cleantech Ltd is promoted by Japan’s Softbank.

“The reverse auction which went on all night is still on,” said a person aware of the development requesting anonymity.

Another person who also didn’t wish to be identified said that the firms still left in the fray were Sembcorp, Enel and SoftBank.

The bids are being conducted by Rewa Ultra Mega Power Ltd, a joint venture between Solar Energy Corp. of India Ltd and Madhya Pradesh Urja Vikas Nigam Ltd.

Mint reported on Thursday about India’s solar power tariff is set to witness another round of an aggressive bidding war by leading domestic and global firms when the world’s largest solar power plant coming up in Madhya Pradesh.
Spokespersons for Green Infra Wind Power Project Ltd, SBG Cleantech Ltd and Enel Green Power SpA couldn’t be immediately contacted.

The solar space has already seen a significant decline in tariffs from Rs10.95-12.76 per kWh during FY11. Friday’s development assumes significance given the comparison with conventional sources of electricity such as coal.
India’s demand for renewable energy is expected to grow by seven times in 2035, according to the latest BP Energy Outlook, which means the share of renewable energy in the country’s fuel mix will increase from 2% to 8% in 2035.
India, the third-largest energy consumer after the US and China, plans to achieve 175 gigawatt (GW) of renewable energy capacity by 2022 as part of its global climate change commitments.

The government says India has a renewable energy potential of around 900GW.

http://www.livemint.com/Industry/zW...-bids-hovering-at-Rs3-per-unit-in-revers.html

 

[Śakra]

means the share of renewable energy in the country’s fuel mix will increase from 2% to 8% in 2035.

Kya?? It's already at 40%

 

[proud_indian]

Kya?? It's already at 40%

It's about 30% at present.
I think he must have been talking specifically about solar which is about 3%.

 

[supun1]

It's about 30% at present.
I think he must have been talking specifically about solar which is about 3%.

The installed capacity is 28%, so total contribution to generation is going to be far less.