India recently concluded the auction for 750 MW Bhadla solar park. The auction was spread across two phases: 500 MW park developed by Saurya Urja Company of Rajasthan (ILFS) and 250 MW park developed by Adani Renewable Energy Park Rajasthan. For the 500 MW auction, Hero Future Energies secured 300 MW at a winning bid of ₹2.47 (~$0.0380)/kWh followed by Softbank Group which won 200 MW at the second lowest bid of ₹2.48 (~$0.0382)/kWh. In the other 250 MW auction, Azure Power won the bid to develop 200 MW by quoting the lowest tariff of ₹2.48 (~$0.0388)/kWh, while ReNew Power won the remaining 50 MW with a bid of ₹2.49 (~$0.0389)/kWh. The projects are expected to be commissioned on or before December 31, 2019, the power generated from these projects will be supplied to Uttar Pradesh to fulfill demand.
According to Mercom India Research, Azure has been bidding low to win projects and this is its second below ₹3 (~$0.046) per kWh. In September, Azure won 260 MW in the GUVNL auction with a bid of ₹2.67 (~$0.042) per kWh. In October, Azure won 250 MW DCR auction by bidding ₹3.14 (~$0.049) per kWh. As a public company, pressure to build a pipeline and show wins could be playing a factor in these aggressive bids.