Unique 750MW Madhya Pradesh solar tender to draw bids ‘well below’ six US cents

Facebook
Twitter
LinkedIn
Reddit
Email
Bids are expected to be submitted early next week, although another extension is possible. Flickr: Christopher Kray

Unique tender structuring and a 28% module price drop will bring tariffs in the upcoming 750MW solar auction in Madhya Pradesh to extreme lows, according to the latest update from Bridge to India.

The analyst firm has already made clear that utility-scale PV bids in 2017 are likely to go below the four rupee (US$0.059/kWh) threshold, starting with the 750MW Rewa tender. However, the firm has now detailed why this tender offers a unique structure that could help bring priecs down all across the country if adopted by other states.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

Not ready to commit yet?
  • 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

After multiple delays, bids are expected to be submitted early next week for three projects of 250MW each, although another extension is possible.

The tender includes three features that are being used for the first time in a public solar procurement tender in India:

  • Open access sale of 75% power output to Madhya Pradesh utilities, with 25% to Delhi Metro Rail
  • A state government off-take payment guarantee (announced in August 2016)
  • Deemed generation compensation for grid unavailability

Along with these factors, there is a INR 0.05/kWh annual escalation in tariffs for 15 years and an 18-months execution period in a phased manner. As a result, Bridge to India expects tariffs to fall “substantially below” INR 4/kWh and it expects that other states may use some of the unique aspects from the Rewa tender to lower cost of their own solar power procurement.

Since the previous lowest ever India solar tariff of INR4.34/kWh, set by Fortum in Rajasthan 12 months ago, module prices have also dropped by 28%.

For the Madhya Pradesh tender, Bridge to India reported that there seems to be strong interest, with likely participation from SoftBank, Adani, ReNew Power, Enel, Engie, AES, FRV, Essel Infra, Azure Power and Hero Future Energies among others.

The project is being tendered by Rewa Ultra Mega Solar (RUMS), a joint venture between Solar Energy Corporation of India (SECI) and the Government of Madhya Pradesh.

Read Next

August 28, 2025
Indian solar manufacturing firm INA Solar has broken ground on its fourth 4.5GW cell production plant in Narmadapuram, Madhya Pradesh.
August 26, 2025
Jakson Engineers is investing over INR80 billion (US$912.5 million) to set up a 6GW integrated solar module, cell, and wafer plant.
August 26, 2025
India installed 14.3GW of new utility-scale solar capacity in the first half (H1) of 2025, marking a 49% increase year-on-year.
Premium
August 22, 2025
Indian PV manufacturers are facing a double hit from US trade tariffs and anti-dumping measures on products sold in America. Shreeyashi Ojha reports on how these are impacting their business models.
August 21, 2025
National Thermal Power Corporation (NTPC), through its renewable energy arm NTPC Green Energy, has commissioned 212.5MW of solar capacity at its 1.25GW Khavda-I project. 
August 19, 2025
Indian renewable energy company SAEL Industries has signed two 880MW power purchase agreements (PPAs) with the Indian states of Gujarat and Punjab.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines