The Indian renewable energy implementing agencies, Solar Energy Corporation of India (SECI) and SJVN Limited, have been successful in discovering low solar tariffs to the tune of $0.03 (Rs 2.52) per unit in their respective auctions this month. Both SECI and SJVN conducted auctions for the selection of developers to set up inter-state transmission system (ISTS) connected 1.2 GW of solar projects anywhere in India. In both the auctions, the solar projects will be set up on build-own-operate basis and the auction agencies will sign 25-year PPAs with developers.
In SJVN’s auction, held last week, Acme Solar, Essar Renewables, NTPC Renewable Energy, Onward Solar, and SAEL Industries emerged as winners. Acme Solar, Essar Renewables and SAEL Industries secured 300 MW each at Rs 2.52 per unit. Meanwhile, Onward Solar won 100 MW at Rs 2.52 per unit. Further, NTPC was allocated 200 MW at Rs 2.53 per unit.
SECI’s auction (Tranche XVI), held a day back, saw even lower tariffs of $0.029 (Rs 2.48) per unit as the wining bid. SAEL Industries and NTPC Renewable Energy both quoted Rs 2.48 per unit to win 250 MW and 200 MW respectively. Meanwhile, BluPine Energy won 50 MW at Rs 2.49 per unit. Only 500 MW was allocated against the total 1,200 MW auctioned.
REGlobal’s Views: India has been witnessing a flurry of auction activity as it races to achieve its renewable energy targets. Always a price-sensitive market, low tariffs are not only limited to solar but also to wind, hybrids, storage as well as newer firm and dispatchable renewable power arrangements. Despite the demand for low tariffs from discoms, the highly competitive renewable energy market in the country has willing bidders in developers and investors willing to finance them.
