Solar tariff slumps to all-time low at Rs4 a unit
New Delhi: The solar power tariff slipped to an all-time low of Rs4 per unit—the maximum rate—fixed under the tender floated for 750 megawatt (MW) solar power projects at Bhadla solar park in Rajasthan.
“Solar Energy Corp. of India (SECI) has finalised a tender issue for the 750 MW solar Photovoltaic (PV) projects in Bhadla solar park, Rajasthan, at a record low tariff for power sale of Rs4 per unit with viability gap funding (VGF) support,” a person familiar with the matter said.
“The government has fixed solar power tariff at Rs4 per unit as the benchmark rate for all tenders in the states where solar tariff has been discovered at up to Rs4.50 per unit in various auctions,” said SECI managing director Ashvini Kumar.
About the specific tender of the 750 MW solar power projects, Kumar said, “This auction will be completed in one and a half months. Now, Rs4 per unit is the benchmark. The tariff can be lower than this rate also as it depends on the bidders to quote the price.
” With this tender issue, SECI has completed auction of more than 5 gigawatt (GW)—the total being 5,410 MW—under the VGF scheme in a span of less than 15 months. Of this, power purchase agreements (PPAs) have been signed for 2,520 MW and PSAs (power supply agreements) for 2,725 MW.
Earlier in January, the solar power tariff had hit a record low, with Finland-based energy firm Fortum Finnsurya Energy quoting Rs4.34 a unit to bag the mandate to set up a 70 MW solar plant under NTPC’s Bhadla solar park tender.
Previously, in November last year, the solar power tariff had dipped to a low of Rs4.63 per unit following aggressive bidding by the US-based SunEdison, the world’s biggest developer of renewable energy power plants.