NTPC 1.2 GW ISTS solar auction sees hostile tariff of INR 2.43/ kWh.

• Reduced solar tariff trends can be attributed to developers' hopeless attempt to take advantage of the current situation in which just guard duty of 14.9% is applicable, according to JMK Research.

Four programmers arised champions in the reverse auction of 1.2 GW of Interstate Transmission System (ISTS) linked solar projects, conducted by the NTPC. The public auction saw the most affordable winning quote of INR 2.43/ kWh.

Winners included O2 power (400 MW), Tata Power (370 MW), Azure Power (300 MW), and also AMP Energy (100 MW).

NTPC 1.2 GW ISTS solar public auction outcomes.

Source: JMK Research.

Talking about the auction results, JMK Research mentioned: "The tariffs seen in the last two public auctions, i.e., earlier SECI 2 GW with INR 2.36/ kWh tariff and this set are very hostile. The low tariff patterns can be a hopeless circumstance where programmers are wanting to take advantage of the present circumstance wherein only safeguard responsibility of 14.9% applies.".

JMK pointed out 2 possible factors for such low tariffs: "Auctions finished before an official notification of fundamental customizeds obligation (BCD) applicability will obtain a passthrough under "Change In regulation" stipulation.

" The module rates are also likely to drop better with the raising space in the demand-supply scenario in the following few months due to stagnation activated by Covid-19 pandemic.".

According to the JMK Research rate tracker, in January-July 2020 period, prices of multi-crystalline modules have actually fallen by more than 15% in the Indian market.