The latest auctions of Solar Energy Corporation of India (SECI) have been showing the aggressiveness of the developers with their solar tariffs. SECI has conducted two auctions recently. An ISTS 1200 MW and the other 750 MW in Rajasthan. The lowest solar energy tariff for the former was INR 2.55 and in the latter, it is INR 2.48. Incidentally, the lowest solar power tariff of India is INR 2.44.
Highlights of the solar tariffs in both the auction:
SECI ISTS 1200 MW
All bidders were successful in the auction. The solar tariffs varied between INR 2.55 to INR 2.61 as shown below. However, SBSR Power which had bid for 600 MW will have to content itself with only 300 MW as per the bucket filling rule.
SECI Rajasthan 750 MW
Only a few bidders were successful. Those who could not win because of high solar energy tariffs that they quoted. Here ReNew which had bid for 360 MW will get to install only 110 MW.
In the case of ISTS auction, there is no surety which state will be procuring the power and that is why the solar tariffs are high while in the auctions where developers know in advance which state will be procuring power the tariffs are low.
Whereas the solar tariffs remain high in state auctions they are lesser in case the auction is that of the central government. In the case of state-level auctions, the tariffs are hovering around INR 2.70. In the case of SECI, the tariffs are well below INR 2.60. Coincidentally, the GOI last year had also planned to cap solar tariffs in the future auctions to INR 2.60 without safeguard duty. Considering the duty the tariff cannot exceed INR 2.78.
Even the bidders, who could not win the projects have quoted solar tariffs well within INR 2.60. Although Rajasthan has a reputation for producing higher solar energy similar auctions in other states will also indicate the level of the solar tariff in India.
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