Industry pressing for removal of Rs 2.6 per unit tariff for 1.2 GW auction

Solar Power Developers Association (SPDA) is pressing for removal of Rs 2.6 per unit tariff 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 12,000 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," an SPDA spokesperson told PTI.

"The industry wanted the tariff cap to be removed completely. The demand seems logical for ministry of new and renewable energy to consider it after last couple of bids experienced zero participation due to tariff cap," he further added.

The hybrid tender was first floated 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.

Promotion of clean energy is important for government. India has set up a target of having 175 GW of clean energy including 100 GW of solar and 60 GW of wind energy by 2022.

According to the Central Electricity Authority data, India has installed renewable energy capacity of around 72 GW.