SECI’s auction for 1,070 MW of solar projects sets record for lowest tariff at Rs 2 per kWh

The solar energy corporation of India’s (SECI) auction for 1,070 MW of solar project in Rajasthan set a record-low lowest tariff of Rs 2 per kWh (Tranche III). In the auction, SECI had received bids for 4,350 MW from 14 companies which meant that the tender was oversubscribed by 3,280 MW. The lowest tariff was quoted for capacities of 400MW and 200 MW were quoted by Green Infra Wind Energy Limited, a subsidiary of Sembcorp and Al Jomaiah Energy and Water Company. The second-lowest bid was quoted by NTPC limited at Rs 2.01 per kWh. The public sector company had quoted 600 MW but was allotted only 470 MW through the bucket filling method.  Among other bidders were SprngUjjvala Energy Private Limited which quoted Rs 2.02 per kWh for a capacity of 300 MW and SJVN Limited which quoted Rs 2.07 per kWh for 250 MW of projects.

SECI had floated the tender in July 2020 which is to be set up on a build-own-operate (BOO). The projects must be interconnected with the nearest sub-station of the state transmission utility at the voltage of at least 33 kV.  The low tariffs are possibly attributed to falling solar module prices and declining interest rates. Before the bid, in August 2020,   NTPC limited also floated a tender for the engineering procurement and construction of 1070 MW of solar projects.As of September 2020, Rajasthan has 5.2 GW of installed solar capacity and another 8.5 GW in various stages of development.

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