Breaking: NTPC’s 250 MW Kadapa Solar Auction in India Sees Record Low Winning Bid of Rs.3.15/kWh
Solar tariff in India touched a new low with Solairedirect’s winning bid of Rs.3.15 (~$0.0486)/kWh, which is 4.5 percent lower than Rs.3.30 (~$0.0494)/kWh (levelized over 25 years) quoted at the Rewa auction in February 2017. The 250 MW project was tendered NTPC at Kadapa Solar Park in Andhra Pradesh. The project completion timeframe is 13 months from the date of signing of power purchase agreement.
The tariffs quoted ranged between a high of Rs.4.68 (~0.0723)/kWh (Mahindra Renewables Private Limited) and a low of Rs.3.15 (~$0.0486)/kWh (Solairedirect). Canadian Solar and Ostro Energy also quoted tariffs below four-rupee mark, but were unsuccessful. This tender is an indicator that future auctions will now be in the Rs.3.50 (~$0.054)/kWh range. With this auction NTPC has successfully awarded solar projects aggregating 3,000 MW as mandated under NSM, Phase-II, Batch-II, Tranche-I.
We were expecting prices near Rs.3.50 (~$0.054)/ kWh, stated an NTPC official. If states and implementing agencies tweak their tenders effectively, cost wise solar can be brought at par with thermal throughout the country, added the NTPC official.
Mercom previously reported, NTPC retendered 250 MW of solar at Kadapa Solar Park under National Solar Mission (NSM) Phase-II, Batch-II, Tranche-I.
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Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.