1,070 MW auction: SECI discovers new record-low solar tariff of Rs 2/kWh

• Singapore-based Sembcorp Energy and Saudi Arabia-based Aljomaih Energy and Water Company won 400 MW and 200 MW, respectively, at a tariff of Rs 2.00 per unit

• The remaining 470 MW was bagged by state-run NTPC Limited at a tariff of Rs 2.01 per unit

New Delhi: Solar power tariffs plunged to a record low of Rs 2 per unit as Indian and foreign companies bid aggressively in the latest round of auction that was conducted by Solar Energy Corporation of India (SECI). In the 1,070-MW solar auction conducted on November 23, Singapore-based Sembcorp Energy and Saudi Arabia-based Aljomaih Energy and Water Company won 400 MW and 200 MW, respectively, at a tariff of Rs 2.00 per unit. The remaining 470 MW was bagged by state-run NTPC Limited at a tariff of Rs 2.01 per unit. The tariff quoted by bidders is inclusive of all statutory taxes, duties, levies, cess etc.

ALSO READ: SECI discovers historic low tariff of Rs 2.36/ kWh for a 2 GW solar tender

The newly discovered solar tariff is about 15.25 percent lower than the previous record low of Rs 2.36 per unit, which was reached in an auction conducted by SECI for a 2 GW solar tender under ISTS (Tranche IX) earlier in July this year. SECI is the nodal agency through which the Ministry of New and Renewable Energy (MNRE) holds wind and solar power project auctions.

Bids for 5,700 MW received for 1,070 MW solar tender

The tender for 1,070 MW of solar power received bids for 5,070 MW. The tender seems to have received an overwhelming response and record-low solar tariffs because discoms in Rajasthan had already agreed to purchase the power from these grid-connected projects. According to the Request for Selection (RfS), the power procured by SECI from the 1,070-MW projects was provisioned to be sold to the state buying entity, ie, Rajasthan Urja Vikas Nigam Limited (RUVNL). 

The selected solar power developers will set up the solar power projects on a Build Own Operate (BOO) basis.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)