SPDA Wants Removal Of Tariff Cap For Hybrid Tender

Solar Energy Corporation of India (SECI) had floated the hybrid tender for the first time earlier this year in May for 2,500 MW, which was later scaled down to 1,200 MW due to lukewarm response from bidders.

The developers are of the view that it would be difficult to sustain a tariff of Rs 2.6 per unit as they are already grappling with the issues of safeguard duty on solar modules and transmission related constraints for wind capacities.

Solar Power Developers Association (SPDA) is pressing for removal of Rs 2.6 per unit tariff cap to generate adequate response for 1,200 MW hybrid auction.

The auction scheduled for October 26 was postponed till November 14. The successful bidder would set up solar and wind capacities of 1,200 MW together.

The industry’s demand is to remove the tariff cap and let the tariffs be discovered through auction process based on market conditions.

The demand seems logical for ministry of new and renewable energy (MNRE) to consider it after last couple of bids experienced zero participation due to tariff cap.

 

 

 

 

Reference- ET, Business Standard