Solar power developers who won the mega auction of 1,200 MW of projects in Jharkhand 16 months ago have agreed to reduce tariffs, which will help them sign power purchase agreements.
Jharkhand is the second state after Uttar Pradesh to renegotiate solar tariffs arrived at through an auction. But while UP went back on signed PPAs, Jharkhand has not actually signed any because the state distribution company found it too costly.
Developers had offered a tariff of Rs 4.99 per unit of power to the Jharkhand Renewable Energy Development Agency (JREDA) at a recent meeting.
Among projects offered at 45 different locations in the state, winning bids ranged from Rs 5.08 to Rs 7.95, depending on size and location of the project.
The agency has not yet taken a decision and the matter may even be discussed by Jharkhand cabinet at its next meeting likely later this week.
The biggest winner in March 2016 Jharkhand auction was ReNew Power with 522 MW. Other notable winners included Suzlon Energy with 175 MW, OPG Power Generation with 124 MW, Acme Solar with 75 MW, Adani Green Energy with 50 MW and the now defunct SunEdison with 150 MW.