Sprng, Ayana, SB emerge lowest bidders under 750MW solar auction

Energy firms Sprng, Ayana and SB have emerged as lowest bidders in the auction by state-run power giant NTPC for a total capacity of 750 MW at Ananthapuram Solar Park in Andhra Pradesh.

While Sprng Energy quoted a tariff of Rs 2.72 per unit, Ayana Renewables and SB Energy quoted Rs 2.73 per unit each in the auction concluded late last night, a source said.

The three companies had bid for 250 MW each on Wednesday. Over a dozen firms had participated in the auction.

NTPC will auction another 2000 MW solar capacities on pan India basis this month.

A sector expert said that the solar power tariff has bottomed out and has been surging in the auctions after touching all time low of Rs 2.44 per unit in May last year in the auction for 500 MW capacities at Bhadla (IV) in Rajasthan.

It had the viability gap funding (VGF) component, as per the ministry of new and renewable energy data.

The latest NTPC auction at Ananthapuram Solar Park does not have the VGF component.

The expert said that the solar power tariff of Rs 2.72 per unit without VGF is a reasonable rate in view of surging prices of solar panels, especially when India imports a large chunk of equipment from countries like China, Taiwan and Malaysia.