New Record Low Solar Tariff of Rs.2.44 (~$0.037)/kWh Set at the 500 MW Bhadla Phase-III Solar Park Auction in India

May 12, 2017


Solar tariff in India has now breached Rs.2.50 (~$0.038)/kWh mark. Within a week solar tariff declined from Rs.2.62 (~$0.0405)/kWh to Rs.2.44 (~$0.037)/kWh. In the 500 MW Bhadla Phase-III Solar Park auction, ACME quoted a tariff of Rs.2.44 (~$0.037)/kWh, which is almost 6.9 percent lower than the previous low tariff quoted in the Bhadla Phase-IV Solar Park auction of Rs.2.62 (~$0.0405)/kWh.

The tariffs quoted ranged between a high of Rs.3.18 (~$0.049)/kWh and a low of Rs.2.44 (~$0.037)/kWh. In all, 10 developers quoted tariffs below Rs.3 (~$0.046)/kWh. ACME won bid to develop 200 MW solar by quoting a tariff of Rs.2.44 (~$0.037)/kWh and SBG Cleantech won bid to develop 300 MW by quoting a tariff of Rs.2.45 (~$0.038)/kWh. ReNew Power and Hero Solar Energy quoted tariffs below Rs.2.50 (~$0.038)/kWh and were unsuccessful in this auction.

“We were expecting prices near the Rs.2.62 (~$0.0405)/kWh mark, same as the Bhadla Phase-IV 250 MW auction, but developers have surprised us. Within a week, we have successfully put thermal behind solar on price,” stated an official at Solar Energy Corporation of India. The competition is getting tougher in the solar sector, the end-users will be benefited, added the SECI official.

Mercom recently did a deep dive, into the Rs.2.62 (~$0.0405)/kWh tariff quoted in the 250 MW Bhadla Phase-IV auction.

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