Adani Power, Azure Power win solar projects bids in Uttar Pradesh.

Adani Power and Azure Power have won the latest auction for solar energy projects with bids of Rs. 4.78 per unit, higher than the record low of Rs. 4.34 set this month. The smaller size of these projects in Uttar Pradesh and the lower level of solar radiation in the state compared with Rajasthan, where the new low was set in the last round, led to the higher price, analysts said.

Prayatna Developers, a subsidiary of Adani Power, and Azure Power India have both been allotted 50 MW at the same price.

In the last three auctions, winners had quoted lower tariffs. Two of them were for projects offered by NTPC in Rajasthan and Andhra Pradesh, while the other was for a project offered by Solar Energy Corporation of India in Maharashtra. The lowest bid in Rajasthan was Rs. 4.34 per kWh, a record, while that in Maharashtra was Rs. 4.41 and Andhra Pradesh, Rs. 4.63.

In Uttar Pradesh, developers will have to acquire land for projects, unlike in Rajasthan and Andhra Pradesh where they will be allotted land in solar parks. Allocation of land as part of the deal in the previous auctions had helped attract foreign companies, which eventually won the projects.

The earlier auctions had also seen higher interest from developers. While there were just seven bidders for a total capacity of 350 MW (against 100 MW on offer) for the Uttar Pradesh projects, there were 20 bidders for 3,850 MW (420 MW on offer) in Rajasthan, 30 for 5,500 MW (500 MW on offer) in Andhra Pradesh and 14 bidders for 1,800 mw (500 MW on offer) in Maharashtra.

ET