One month, three bids and there has been a new tariff discovery. The solar tariff has come down by 22.54 per cent. This is good news on two counts. First, it will drive an impetus towards cleantech, which will benefit users (lower tariff), environment and the device ecosystem (manufacturing). Second, other fuels will have to work towards lowering their thresholds. The average rate of power generated by the coal-fuelled projects of India’s largest power generation utility, NTPC Ltd, is Rs 3.20 per unit. In contrast, the auction for 250 MW project at Kadapa Solar Park in Andhra Pradesh, an NTPC venture went for Rs 3.15 per unit. Solairedirect bagged this project emerging as the lowest bidder. This auction took place on April 12, 2017.
Next was a 250 MW project of Solar Energy Corporation of India (SECI) at Bhadla solar park in Rajasthan. The lowest bid was for Rs 2.63 per unit. The auction took place on May 9.
Two days later on May 11, SECI invited another tender for 500 MW solar project at Bhadla solar park in Rajasthan. Acme Solar emerged as the lowest bidder at Rs 2.44 per unit and got 200 MW, while SBG Cleantech emerged as the second lowest bidder and bagged 300 MW project at Rs 2.45 per unit.
So in a matter of a month, the solar power tariff came down by Rs 0.71 per unit (22.54 per cent) from Rs 3.15 per unit to Rs 2.44 per unit.
This is better than the government’s expectation also. In the recently held annual session of CII, the power minister, Piyush Goyal had stated that the government is looking at Rs 3 per unit as the benchmark price for power from all energy sources such as thermal, solar and wind in the medium term.
In 2010-11 solar tariffs ruled in the range of Rs 10.95-12.76 per unit. And even as it is being debated whether such tariffs are sustainable the firms are bidding aggressively. The auctions are seeing a tremendous response. SECI’s 500 MW project in Bhadla, Rajasthan got 24 bids, 13 were shortlisted and the reserve price was set at Rs 3.01/unit. It went for Rs 2.44 & Rs 2.45/unit. For another 250 MW project also at Bhadla, SECI got 27 bids. The last discovered lowest tariff for a solar power project in India was Rs 4.34 per unit. The bids were conducted by Rewa Ultra Mega Power Ltd, a joint venture of SECI and Madhya Pradesh Urja Vikas Nigam Ltd.
