Power & Energy

Solar Project Auctions are requested to be Deferred

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A solar project auction was held in the first week of May by NTPC. It was for 750MW and held at Bengaluru. Following that NTPC and Solar Energy Corporation of India (SECI) has scheduled new bids for 2000MW and 8000MW respectively.

In response to this decision, various developers of solar projects like Azure Power, Avaada and Spring Energy have individually requested the ministry of new and renewable energy to defer this auction. They believe that there are certain limitations that must be taken care of before this said auction can take place.

One of the reason for them to worry is that, there is no certainty about the grid connectivity for their projects. They are yet to get the final rules regarding the grant of connectivity to the Inter-State Transmission System (ISTS) along with the regulations for General Network Access for renewable energy projects. This is because the draft rules, which were released by the Central Electricity Authority in the beginning of April, are due for a public hearing.

The developers additionally stated that they have no problem regarding completing their projects. The problem lies in the fact that even after completion they will not be able to connect to the national grid, due to lack of clarity on the matter and its responsibilities.

This was the first auction where the power had to be evacuated through ISTS at the substations. The developers also have a risk of incurring a huge loss, if they are not granted, as they need to acquire 50% of the land in the projects’ vicinity to be eligible for connecting at an ISTS.

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