India’s first large-scale wind-solar hybrid auction ended with 840MW of winning capacity and a lowest tariff of 2.67 rupees/kWh ($0.037/kWh) after a delayed and scaled-down process that attracted two bidders.

Developers SB Energy, part of Japan’s SoftBank, and Adani Green split the capacity with 450MW and 390MW respectively.

The tender was the first run since India earlier this year released a long-awaited policy to underpin hybrid development, seen as a highly effective way to extract maximum value from renewable energy sites in a nation that can offer windy nights and sunny days.

But the final outcome is a far cry from the scenario envisaged when details of the tender were first released in June, when a process to auction 2.5GW was announced.

The tender was subsequently scaled-back to 1.2GW and delayed following lukewarm developer interest – with not even all of that eventually auctioned off.

Local analysts said the root of the problem was a revised cap price of 2.60 rupees/kWh placed on the tender, which had to be increased to 2.70 rupees to get anyone on board.

The issue of cap prices has proved a thorny one for India’s entire renewable auction programme, with developers complaining that they are making it unviable to develop many projects. Representatives of the renewable energy sector are understood to have met with senior government officials to discuss the matter, which is seen as a threat to India’s huge wind and solar build-out ambitions.

Recent pure wind auctions have seen prices edging up to 2.77 rupees/kWh from the low point of 2.43 rupees/kWh seen earlier. A large-scale solar auction in the summer delivered prices around 2.59 rupees.

The Solar Energy Corporation of India (SECI), which runs renewables auctions for the Indian government, is putting a brave face on the hybrid tender, according to local reports.

An unnamed SECI official told the Economic Times: "This is a good price for the first time. It is also dependent on individual efficiencies of panels or turbines, so tariffs will keep falling."

Hero Future Energy opened India's first wind-solar hybrid plant in April. HFE said it was able to advance the Karnataka project as it is a ‘captive producer’, serving industrial and commercial power users in the state at privately agreed rates.

Transition

Debut Indian hybrid auction awards lower-than-hoped 840MW