Recent solar auction sets a record low tariff of INR 1.99/kWh
Solar tariff reached a new record low of INR 1.99 per unit at a recent auction for 500 MW of solar projects in Gujarat. The previous low of INR 2.00 per unit was recorded at an auction conducted by SECI in November 2020.
A new record lowest (L1) tariff for solar reached INR 1.99 per unit at a recent auction conducted by the Gujarat Urja Vikas Nigam Limited’s (GUVNL) (Phase XI) for 500 MW of solar projects. This is far too low than the lowest winning tariff of INR 2.78 per unit that emerged at the most recent solar auction conducted by Gujarat in August 2020.
Prior to this the lowest ever recorded tariff was INR 2.00 per unit that was reached at an auction in November 2020. The auction was organized by the renewable energy ministry’s nodal agency, Solar Energy Corporation of India in Rajasthan for 1,070 MW of solar projects.
According to sources, in this auction for 500 MW of solar project – NTPC, Torrent Power, Aljomaih Energy and Water Company, and Aditya Birla Renewables won the contract for 200MW, 100MW, 80MW, and 120WW respectively, at an (L1) tariff of INR 1.99 per unit.
Earlier, GUVNL invited bids for procurement of 500 MW of electricity from grid-connected solar projects in September 2020. Under the bid, projects under progress, projects which have not been commissioned yet, or projects that have not already been commissioned with any organization but which do not have a Long Term PPA were eligible to participate.
The tender was oversubscribed as there were received more than 3000 MW bids for this tender.
