500 megawatt (MW) of solar power. State-run Maharashtra State Electricity Distribution Company (MSEDCL) will sign a 25-year power purchase agreement (PPA) with the lowest bidder participating in the auction.
Of the 39,084 MW of installed solar capacity in the country, Maharashtra houses 2,290 MW. India has set a target to raise the capacity of installed renewable energy generation plants to 450 GW by 2030. However, if the target is to be met, the number of cancellations needs to reduce. Of the 143 GW of tenders floated for building solar capacities, since FY17, around 78 GW have been cancelled.
The current installed renewable energy generation capacity stands at 94 GW and about 34 GW is under various stages of implementation while 30 GW is under various stages of bidding.
Of the 24 GW solar tenders floated in FY21, around 14 GW were auctioned. The lowest solar tariff of `1.99/unit was discovered in FY21 for a 500 MW auction conducted by Gujarat in December 2020. In November 2020, the rate of `2/unit was discovered in the solar auction for Rajasthan.
Most developers quoting the lowest tariff in FY21 were backed by foreign capital, who utilised the environment of low interest rates globally. However, with the imposition of basic customs duty on solar equipment import starting April 2022, tariffs are expected to increase