Solar auctions to delay further amid concerns over duty, ISTS issues

Solar auctions would be "dragged further" amid uncertainty about imposition of 70 per cent safeguard duty on solar equipment and concerns among developers over grant of inter-state transmission system (ISTS), according to industry sources.

Last month, state-run power giant NTPC had deferred auction of 2,000 MW of solar capacity to the first week of June from May 21. The company, however, did not go ahead with this auction even in the first week of this month.

"The issue related to grant of connectivity through inter-state transmission system has not been resolved so far and discussion with the Ministry of New and Renewable Energy (MNRE) is still on. Besides, there is uncertainty over 70 per cent safeguard duty under consideration of the government. Therefore, solar auctions would be dragged further," an industry source said.

The source said, "Solar Energy Corporation of India (SECI) has conducted auction for 125 MW of solar capacities for solar parks in Uttar Pradesh last week where successful bidder got the project at a tariff of Rs 3.34 per unit due tor developers concerns over the two issues and other reasons."
But industry sources said, "The solar auctions would not happen unless these two contentious issues are resolved. If safeguard duty is implemented, it will further increase tariffs and discoms will not want to purchase solar power."