Indian solar tariffs on cusp of smashing record lows

Facebook
Twitter
LinkedIn
Reddit
Email
Flickr: Christopher Kray

The first round of bidding for the 750MW Rewa solar park in the Indian state of Madhya Pradesh has guaranteed that tariffs will break the record lows for Indian solar by a significant distance.

Capacity is available in three separate blocks of 250MW with the final reverse auction due to take place tomorrow (9 February). The initial bids suggest that all the 750MW available will be awarded for a tariff of no higher than INR 3.64/kWh (US$0.054). Furthermore, a total of 15 companies all put in initial bids below 4 rupees per unit.

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

The lowest First Round submissions were as follows:

Company Capacity Bid (INR/kWh)
Sembcorp 250MW 3.5933
Solenergi Power 250MW 3.62
Softbank 750MW 3.64

However, it should be noted that the tariffs are subject to a INR 0.05/kWh escalation every year for the first 15 years.

Shaurya Bajaj, analyst, consulting at Bridge to India, told PV Tech: “Considering the fact that there is this guarantee from the state government for off-take of power, we had expected the final auction to finish between INR3.4-3.6/kWh, so it is a bit surprising that the first round has [already] come to a level of 3.59 rupees.

“But considering the appetite of developers, it’s not so shocking anymore.”

The first round of bidding was once again filled up with Indian participants including, Aditya, ACB, Hero, Acme, ReNew, Azure, Adani, Orange, NHDC, AMPL Cleantech, Mahindra Renewables and RattanIndia.

However, heavyweight foreign players are still in the running including Enel, Softbank, GDF Suez, Sembcorp, Canadian Solar and Solenergi.

Only Torrent Power and Shapoorji Pallonji will no longer be qualified to participate in the reverse auction after this first round.

Bridge to India had already forecasted that the Rewa bids would break records due to the tender’s unique structuring. Furthermore, since the previous lowest ever India solar tariff of INR4.34/kWh, set by Fortum in Rajasthan 13 months ago, module prices have also dropped by 28%.

In New Delhi, PV tech recently interviewed the chief of Acme Group, who insisted that the Indian PV industry is bidding low on solid foundations rather than being overly aggressive, as some commentators have feared.

Read Next

June 24, 2024
The US has yet again been named the most attractive market for renewables investment and deployment opportunities, according to EY.
June 21, 2024
Solar PV is expected to generate 20% of global power across midday peaks on the summer solstice in the northern hemisphere, up from 16% in 2023.
Premium
June 21, 2024
PV Tech Premium talks to Nextracker president Howard Wenger about the company's business, expansion plan and R&D spending. 
June 20, 2024
Singaporean state-owned energy company Sembcorp has completed the acquisition of 245MW of renewables projects in Vietnam.
June 20, 2024
Greater supply chain independence is a priority for companies in the solar sector, according to Hardeep Singh at Intersolar Europe 2024.
June 18, 2024
Indian solar module manufacturer Vikram Solar has signed a 393.9MW module supply agreement to supply the Khavda Solar park in the state of Gujarat.

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
Upcoming Webinars
July 10, 2024
9am (BST) / 10am (CEST)
Solar Media Events
September 24, 2024
Warsaw, Poland