Credit: Tata Power
Madhya Pradesh Urja Vikas Nigam Limited’s (MPUVNL) 35MW rooftop solar auction has drawn bids as low as INR1.58/kWh (US$0.022), however the tariffs include an escalator and are heavily subsidised.
The rooftop solar comes under India’s RESCO model, where the developer leases out the PV system to the rooftop owner.
The 1.58 rupee tariff for solar on the buildings of Power Grid Corporation of India (PGCIL) is the lowest ever tariff for both rooftop and utility-scale solar in India to date.
Vinay Rustagi, managing director at consultancy firm Bridge to India, said: “On the face of it these tariffs, of course, look very low but there is actually 45% subsidy being offered under this tender by state as well as central government. Secondly, the tariff has a 25-year escalation clause so the tariff actually goes up every year by 2.5% so considering these things, the tariff actually starts making much more sense.”
Although the projects are yet to be allocated, the tariffs so far and the organisations whose premises will have solar installed were as follows:
|Institutions of Central Govt./National Importance||1.67|
|Municipal Corporations/Nagar Palika Parisad in MP||1.69|
|Govt. Medical Colleges under Dept. of Medical Education||1.74|
|Govt. Universities in MP||1.91|
|Colleges under department of Higher Educations in MP||2.21|
|MP Police Establishments||2.33|
|Govt. Engineering/Poly-Technic/ITI Colleges in MP||2.35|
Before the auction, the tender drew bids from 31 companies.
The 750MW Rewa Solar Park in Madhya Pradesh, which drew what were at one time the lowest ever solar tariffs in India, started supplying power to the grid in July.
Solar & Storage Finance Asia returning to Singapore for its 5th edition, will be the meeting point for developers, financiers and investors across the region. Explore in depth the opportunities of the different countries via case studies, business and financial models that will foster growth in the region with particular focus on Thailand, Philippines, Indonesia, Taiwan, Korea, Cambodia, Singapore, Malaysia & Vietnam. The programme has been designed to enable you to win business and understand new opportunities in the market. Key topics include floating solar, project finance for PPAs, modernization of the grid and strategies for structuring and designing hybrid deals.