Developers, Jharkhand Government resolve solar power pricing deadlock
Solar developers and the Jharkhand government have resolved an 18-month long deadlock over the price of solar power, with the developers agreeing to a reduced tariff of Rs 4.95 per kwH.
The problem arose after the Jharkhand Renewable Energy Development Agency (JREDA) held a mega auction of 1,200 MW in March 2016 to set up solar projects at 45 different areas across the state. Winning bids ranged from Rs 5.08 to Rs 5.48 per kwH for the larger projects of above 25 MW and Rs 5.29 to Rs 7.95 for those below. The biggest winner was ReNew Power, which secured 522 MW.
Letters of intent were duly issued by Jharkhand’s discom, Jharkhand Bijli Vitaran Nigam Ltd (JBVNL), in May 2016 but thereafter it kept avoiding the actual signing of the power purchase agreements (PPAs) with the winning developers.
At meetings between the state government and winning developers, officials made it clear that the discovered tariffs in the auction were too high compared to those in other states and wanted them brought down, while the latter kept resisting any such revision. ET was the first to report on the standoff in its October 17, 2016, issue.