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India sees Solar Electricity prices of 12-16c per unit in Reverse Auction Bidding

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India has managed to build more than 1 GW of solar capacity already at competitive rates, thanks to reverse auctions and Solar Energypragmatic feed in tariffs. Now that states have taken the lead from the center, more capacity is expected to come up through reverse auctions. Solar plants in India have seen cutthroat competition between companies, leading to very low solar electricity prices. The most recent auction of solar plants in India’s southern state of Andhra Pradesh has seen bidding for solar plants between 12-16c unit. This is quite competitive with industrial tariffs which are quite high in India. With many regions not getting any power due to high priced coal and gas, solar has become an exciting option. We at Greenworldinvestor have already forecasted a bright future for solar energy in India ever since our inception. This is becoming reality with bigger states like TN planning to set up 1 GW of solar capacity every year.

1160 MW Andhra Pradesh Solar Tender – Highlights

1) Tender submission date is January 19, 2013 – Close to the last dates of submission of solar tender in TN which will lead to complexity and confusion. I think this could have been avoided but collaboration between different arms of the governments in India is non-existent.

2) Nodal Agency is APTransco – The state owned transmission and distribution company APTrasco will be the nodal agency responsible for the entire process of tender opening, awarding and execution. The agency has already allocated transmission capacity by reservicing substations. This is a good move as evacuation of solar energy to the power grid is a major headache for solar developers.

3) Size of the Solar Power Plant – Solar energy ground plants can be built in minimum 1 MW and maximum 20 MW.

4) Technology – There is no difference in the price being given for different solar technologies. This means that the expensive solar thermal technology is effectively out of the race.

5) PPA Term – The winning solar developer will get a Power Purchasing Agreement for 25 years.

More Details

1) Capacity – Selection of Solar power projects in Andhra Pradesh under competitive bidding route for a capacity about 1,000 MW is as per the AP Solar State Policy.

2) Net worth – The net worth of the bidder should be equal to or greater than the value calculated at the rate of Rs 1 Crore per MW.

3) Technical – The bidder shall deploy commercially established solar PV/STP technology.

4) Lowest Bid Price will have to be matched – Selection of eligible bidders will be based on least quoted price per commercial unit of electricity.

Read more about Solar Panels in India.

Tamil Nadu Solar Energy Policy

The southern states are turning to solar power to alleviate some of their electricity issues. Andhra Pradesh’s solar policy which was enacted a month ago, gave a rapid fire clearance to solar power projects beside others incentives. Tamil Nadu has been preparing a solar energy policy for quite some time and has finally come out with a comprehensive policy which touches a number of subjects. Tamil Nadu is the biggest renewable energy state in India and accounts of almost 40% of the country’s wind power capacity. The strong growth has been due to the support given by the government which has made it the de facto wind capital of India. The state also has a vibrant wind manufacturing industry in the state with some top wind energy companies having their factories in Tamil Nadu.The opportunistic investors had already anticipated this policy and bought large parcels of land in Tamil Nadu’s sun belt which gets over 300 days of sun a year.

This policy will be known as the “Tamil Nadu Solar Energy Policy – 2012”. The Government of Tamil Nadu will undertake a review of this Policy as and when required in view of any technological breakthrough or any changes taking place in the policy at the National level.

Key Objectives

  • To project Tamil Nadu as a Solar Hub
  • To generate 3000 MW of Solar Energy by 2015
  • To achieve grid parity by 2015
  • To encourage indigenous solar manufacturing facilities in the State

Development of Solar Power in Tamil Nadu

Phase (2013-2015)                Target (MW)

2013                                          1000

2014                                          1000

2015                                          1000

Total (by 2015)                     3000

With average solar incidence of 5.5-6 kWh/m2/day, Tamil Nadu is amongst the states with the highest solar insolation in India. To retain its leadership position, Tamil Nadu will promote setting up solar power projects to the extent of 3000 MW over a period of 3 years, as furnished above.

Tamil Nadu will actively promote the solar energy sector by prescribing a certain percentage of electricity consumption through solar energy as mandatory. This will be progressively increased.

Hindu Business Online

The bidding process for setting up grid-connected solar power farms in Andhra Pradesh enters a crucial phase with the opening up of the price bids. According to sources, the lowest quote was by Essel Mining and Industries Ltd, a company promoted by Aditya Birla Group, at Rs 6.52 per unit. The average range quoted for one unit varied from Rs 7 to close to Rs 9 a unit.

APTransco received close to 300 bids from 184 bidders with a proposal to develop 1,354 MW. Alfa Infra Projects with 80 MW and Lanco Solar with 60 MW bid for highest capacities at several locations. Madhucon Sugar and Power, Azure Power, Pennar Industries, Premier Solar, Hetero Drugs, Astonfield, NSL Renewables, are among others in fray for setting up solar PV units.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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