Indian solar tariff record toppled again in Andhra Pradesh

Facebook
Twitter
LinkedIn
Reddit
Email
The prices have for the second time breached the five US dollar cents mark in India. Flickr: Pranav

Indian solar tariffs reached yet another new low yesterday with the Indian arm of French clean energy firm Solairedirect winning 250MW(AC) of capacity in Andhra Pradesh with a record bid of INR3.15/kWh (US$0.0494).

The bid for capacity at the Kadapa Solar Park was for a straight tariff with no escalation, meaning it is lower than the ground-breaking levelised tariff of INR3.30/kWh achieved at the Rewa Solar Park in Madhya Pradesh in February.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Notably, the prices have for the second time breached the five US dollar cents mark.

Jasmeet Khurana, associate director, consulting at Bridge to India told PV Tech that the tariff was very aggressive as it was “one of the last few tenders with [utility] NTPC as an off-taker for the current round”.

He added that while there are still some NTPC tender plans in Rajasthan and other states, many companies are “desperate” and will probably now have to wait a long time to get a similar project.

As India’s largest utility, NTPC is well known as the most bankable off-taker for solar projects in India, which has historically helped to bring tariffs down across all its tenders and has led to fiercely competitive auctions.

Analysts have noted a significant slowdown in tender allocations of late, partly due to states reworking their tender parameters to imitate the unique qualities of the Rewa tender, such as a state government off-take payment guarantee.

In the latest auction, only Solairedirect came out with any awarded capacity and New Delhi-based Ostro Energy was the only other bidder also willing to go below the levels set at Rewa. The lowest bidders were as follows:

Developer Tariff (INR/kWh)
Solairedirect Energy India 3.15
Ostro Energy 3.16
Canadian Solar 3.39
Greenko Energies 4.09
Azure Power 4.38
Mahoba Solar 4.54
Mahindra Renewables 4.68

NTPC has now awarded 3GW of solar projects under the National Solar Mission, phase II, batch II, tranche I.

While many industry members have concerns about project viability with the low tariffs seen in India, Finnish firm Fortum recently completed a 70MW plant in Rajasthan that once had the lowest tariff in India, perhaps putting some fears to rest.

As of 31 March 2017, India had 12,288MW of solar PV installed according to energy minister Piyush Goyal. Out of this Andhra Pradesh has the most installed of any state with just over 1,867MW.
 

Read Next

June 14, 2024
Spanish PV developer Solarpack has signed a power purchase agreement (PPA) with Indian state-owned utility SJVN for a 482MW hybrid solar-wind park.
June 4, 2024
The Solar Energy Corporation of India (SECI) has launched a request for proposals for 1.2GW of new solar PV capacity in the country.
May 31, 2024
Mercom India has published its latest research into Indian rooftop solar, finding that India installed 367MW of new capacity in Q1 2024.
May 31, 2024
Indian renewables developer Avaada Energy has secured a 1050MW contract in a tender issued by the government’s Renewable Energy Implementing Agency (REIA) and National Thermal Power Corporation (NTPC).
May 29, 2024
The challenges facing Europe's solar sector are explored in depth in the latest edition of our quarterly journal, PV Tech Power.
May 24, 2024
Waaree Energies has signed an agreement to supply 445MW of modules to Statkraft India for a project in Bikaner, Rajasthan.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 2, 2024
Athens, Greece
Solar Media Events
July 9, 2024
Sands Expo and Convention Centre, Singapore
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia