Solar bids in India’s Rajasthan near record low as 16 developers go below five rupees

Facebook
Twitter
LinkedIn
Reddit
Email
Mahindra Susten and Shapporji Pallonji's latest solar bids are one rupee off the previous India record low of INR 4.34/kWh. Flickr: Christian Haugen

The latest Indian solar auction has seen wining tariffs return to extreme lows at INR 4.35/kWh (US$0.065) for 130MW of PV in the Indian state of Rajasthan.

The auction, held by the largest Indian utility NTPC, was for capacity outside solar parks and the three successful players were all Indian firms.

Developer Bid (INR/kWh) Capacity (MW)
Shapoorji Pallonji 4.35 50
Mahindra Susten 4.35 60
Adani 4.36 20

However, a total of 16 developers were all willing to put in bids below five rupees per unit. Tariffs below five rupees have divided industry commentators over the last six months as they speculated over just how bankable and viable such projects are. Nevertheless, the lowest ever solar bid in India from Finland’s Fortum Finnsurya Energy at a price of INR4.34/kWh was also in Rajasthan, although this was in a solar park.

Jasmeet Khurana, associate director, consulting, Bridge to India, told PV Tech: “This was an NTPC [auction] so it was expected that it would be aggressive.”

NTPC is seen as by far the most reliable Indian off-taker in a country where Distribution Companies (Discoms) are waylaid with debt. However, Khurana said the latest bids were still slightly lower than expected.

Recent India bids for Solar Energy Corporation of India (SECI) tenders have seen slightly higher tariffs due to SECI being seen as a less reliable off-taker than NTPC.

Referring to the new capacity being outside solar parks, Khurana said that there is a difference in terms of risk perception; meanwhile, in terms of cost, a solar park in Rajasthan might even be a little more expensive.

Read Next

August 12, 2022
REC Solar and its parent company, Reliance Industries, have ramped up recruitment of staff for its India solar manufacturing plant.
August 12, 2022
Yingkou Jinchen Machinery has an agreement with Indian module maker Waaree to supply it with a 2.5GW high-efficiency module production line
August 11, 2022
The financial adversity of India’s struggling distribution companies (Discoms) has been reflected in a significant downgrading in the latest rankings by the Ministry of Power, giving yet more concern for renewable energy players
August 8, 2022
Despite an initial selection of 15 bidders, Chile’s latest power auction awarded only two companies contracts, with 777GWh of solar PV co-located with energy storage and wind secured.
August 8, 2022
India deployed 8,359MW of solar PV in the first half of the year, marking a significant increase of 71% compared to the same period last year
August 5, 2022
Spanish developer X-Elio has been awarded 15MW of solar PV capacity in Japan’s first feed-in premium (FiP) auction.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
London
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event