- SJVN concluded its auction for 1,200 MW ISTS solar power projects, with ACME Solar, SAEL, OnWard Solar Power, and Essar Renewables securing projects at a tariff of ₹2.52 per kWh. N -09876r
- The auction drew significant renewable energy players, including ACME Solar and SAEL, each winning 300 MW, while OnWard Solar Power and Essar Renewables also secured substantial capacities.
- The 1,200 MW projects, part of SJVN’s May 2024 tender, will be developed across India with a 25-year Power Purchase Agreement.
An Indian hydroelectric power generation company, Satluj Jal Vidyut Nigam (SJVN) has wrapped up the auction for its ambitious 1,200 MW Inter-State Transmission System (ISTS) solar power projects, marking a crucial milestone in India’s renewable energy landscape. The auction garnered significant attention due to its highly competitive tariff outcomes, setting a new benchmark in the sector.
Several leading players in the renewable energy industry participated, reflecting the growing interest and investment in India’s solar energy market. Among the notable participants were ACME Solar, SAEL, OnWard Solar Power, Essar Renewables, and NTPC Renewable Energy Ltd. After a rigorous bidding process, four companies—ACME Solar, SAEL, OnWard Solar Power, and Essar Renewables—secured projects.
ACME Solar and SAEL each won 300 MW capacities at a competitive tariff of ₹2.52 per kWh, demonstrating their strategic positioning in the solar market. Essar Renewables, expanding its presence in the renewable energy sector, also won a 300 MW capacity at the same tariff, signalling its commitment to contributing to India’s green energy goals. OnWard Solar Power, a relatively newer entrant in the industry, secured a 100 MW project, adding to the diversity of the competitive landscape.
NTPC Renewable Energy Ltd. (NTPC REL), a state-run NTPC Limited subsidiary, also obtained a significant 200 MW capacity. However, NTPC REL’s bid came in at a slightly higher tariff of ₹2.53 per kWh, reflecting the intense competition and close margins in the auction.
SJVN floated the tender in May 2024 to develop 1,200 MW of ISTS-connected solar power projects across various locations in India. The tender adopted a tariff-based competitive bidding approach, a preferred method for renewable energy procurement in the country. The company intends to enter a 25-year Power Purchase Agreement (PPA) with the selected bidders, ensuring a long-term commitment to power generation and supply under the terms outlined in the Request for Selection (RfS) and the PPA.
To encourage broad participation, SJVN allowed bidders to propose project capacities ranging from 50 MW to 600 MW. The company recognised the unique challenges and opportunities in different regions, setting the minimum project capacity at 30 MW for projects in the North-Eastern States and Special Category regions. SJVN also structured all project capacities in multiples of 10 MW, ensuring flexibility while maintaining a standardised approach.
The competitive tariffs in this auction underscore the intense competition among renewable energy developers in India, with bids submitted at narrow margins. This trend reflects the broader decline in solar energy costs nationwide, driven by technological advancements, economies of scale, and supportive government policies. The auction results highlight the viability and affordability of solar power, emphasising the growing confidence of significant industry players in India’s renewable energy sector.
The successful conclusion of this auction marks a critical step towards achieving India’s ambitious renewable energy targets, which include reaching 500 GW of non-fossil fuel capacity by 2030. It also demonstrates the strong interest and commitment of significant players in the solar sector, positioning India as a global leader in renewable energy development. As the country continues to scale up its renewable energy capacity, these auctions will play a vital role in shaping the future energy landscapes and ensuring a sustainable energy supply for the nation.