India draws new record-low solar tariff of INR 2/kWh

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A recent 1.07 GW auction held by the Solar Energy Corporation of India (SECI) attracted a historic low solar electricity tariff of INR 2/kWh from Saudi Arab’s Aljomaih Energy and Water Company and Singapore-headquartered Sembcorp’s India arm Green Infra Wind Energy Ltd.

The price is 15% lower than the INR 2.36/kWh bid submitted by Spanish developer Solarpack in a 2 GW auction previously, which set an India record at that time.

The procurement exercise saw all the grid-connected capacity allocated for INR 2-2.01/kWh with NTPC as the only successful Indian bidder.

Green Infra Wind Energy Ltd secured 400 MW and Aljomaih Energy and Water Company 200 MW—for INR 2/kWh each.

NTPC bagged the remaining 470 MW capacity at INR 2.01/kWh.

The capacity—to be set up on a ‘build-own-operate’ basis—will come up in the State of Rajasthan.

Solar Power Developers Association (SPDA), a national association representing India’s upcoming solar power generators and developers, attributed the achievement of the INR 2/kWh to stable government policies and the proactive role of implementation agencies.

“Prime minister Narendra Modi laid the ground with a grand vision of adding 175 GW of renewables by 2022 and further revising the target to 450 GW by 2030. The program has enabled developers to achieve the necessary scale and has been one reason for the rapid decline in tariffs. It also reinforces the confidence shown by national and international investors in India’s renewable growth story,” it said.

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