SECI tenders 750MW solar in Rajasthan with new VGF tariff benchmark of four rupees

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
The previous INR 4.43/kWh benchmark was to be moved to just 4 rupees in any state that has already seen tariffs fall below INR 4.50/kWh. Credit: SECI

Solar Energy Corporation of India (SECI) is tendering for 750MW of solar capacity in Rajasthan with the benchmark tariff to be combined with viability gap funding (VGF) set at just INR4/kWh (US$0.06) for the first time.

As reported by PV Tech in August, India’s central government planned to alter the benchmark tariffs that are combined with VGF, which is a form of funding support from the government.

The previous INR4.43/kWh benchmark was to be moved to just four rupees in any state that has already seen tariffs fall below INR4.50/kWh. At the time, only Rajasthan had seen bids fall below this level with successful submissions from Fortum (4.34), Shapoorji Pallonji, Adani and Mahindra Susten (4.35).

This is why these latest tenders in Rajasthan have seen their benchmarks dropped. In this case, SECI has issued two separate tenders: 500MW in the Bhadla Phase III solar park, and 250MW in the Bhadla Phase IV solar park. Both tenders come under National Solar Mission (NSM) Phase II, Batch IV.

The tariff reduction is expected to make solar PV more attractive to distribution companies that can buy solar power at the more attractive rate.

Unlike Rajasthan, tariffs will be set at INR4.50/kWh in states that have yet to see a tariff go below the 4.50 rupee threshold.

Yesterday Ministry of New and Renewable Energy figures revelaed that India had surpassed 8.7GW of solar capacity, with Rajasthan in second place in terms fo state-wide additions with 1301.15MW.

Read Next

November 24, 2021
Tata Group is planning to set up a 4GW solar cell manufacturing unit in the Indian state of Tamil Nadu, according to a report from the Times of India.
November 17, 2021
Prices for solar modules in the US are expected to normalise following last week’s rejection of a petition surrounding alleged anti-circumvention of anti-dumping and countervailing duties (AD/CVD).
November 15, 2021
US solar manufacturers behind the controversial anti-circumvention petition have said they are “evaluating all options” and could refile petitions in the future.
November 15, 2021
India’s government is set to scale up funding for its production-linked incentive (PLI) programme for solar manufacturing as it eyes exports of PV equipment.
November 12, 2021
Indian independent power producer (IPP) Azure Power has received a letter of award (LOA) for its first 150MW interstate transmission system connected (ISTS) solar-wind hybrid project with the Solar Energy Corporation of India (SECI).
November 5, 2021
First Solar is actively exploring future capacity manufacturing locations after recording a surge in demand, both domestically and internationally, amidst supply chain obstacles impacting the PV industry.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
December 1, 2021
Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal