Renewable Energy Tariffs Drop 50% Since FY 2013-14: Govt

Renewable Energy Tariffs Drop 50% Since FY 2013-14, To Rs. 2.48–4.99/Unit

The Ministry of New and Renewable Energy (MNRE) said that renewable energy tariffs in the country have gone down up to 50% since 2013-14. The information was furnished by the ministry before the Parliament in a written reply.

Mentioning the range of tariff rates, the MNRE Minister Pralhad Joshi said, “The range of tariffs discovered for different renewable energy (RE) projects under these reverse auctions has been ₹2.52 – ₹5.60 per unit during FY 2023-24 and ₹2.48 – ₹4.99 per unit during FY 2024-25. The tariff range has come down from ₹5.50 – ₹9.50 per unit in FY 2013-14 to ₹2.48 – ₹4.99 per unit during FY 2024-25, a reduction of about 50%.”

The minister also  shared details about the number of reverse auctions conducted for renewable energy projects in 2024 and the average reduction in tariffs achieved compared to the previous year.

The minister, in his written reply, said, “As per the information provided by the Renewable Energy Implementing Agencies (REIAs) of the Ministry of New & Renewable Energy, namely Solar Energy Corporation of India Limited (SECI), NTPC Limited, NHPC Limited, and SJVN Limited, a total of 16 reverse auctions were conducted during FY 2023-24.”

For auctions conducted during FY 2024-25 (till December 31, 2024), the minister said, “A total of 24 reverse auctions have been conducted so far in FY 2024-25 (till December 31, 2024) by the REIAs in respect of the bids issued on or after April 1, 2023, for renewable energy (RE) projects.”

Prozeal Set To Supply 24.40 MWp Solar Power To Aarti Drugs

Also Read

Key Tenders That Shaped Up in 2024

Earlier this year, some of the tenders that went as low as ₹2.52/unit were SJVN solar tenders, which saw the average tariff for the solar project drop to ₹2.52/kWh. Some of the key winners of the project included Acme Solar Holdings, SAEL Industries, Essar Renewables, Onward Solar Power, and NTPC Renewable Energy (NTPC REL). Of the 1.2 GW project, 300 MW each was awarded to Acme Solar, Essar Renewables, and SAEL Industries at a tariff of ₹2.52/kWh. Onward Solar secured 100 MW, while NTPC REL won 200 MW out of the 400 MW it bid for, at a tariff of ₹2.53/kWh, using the bucket-filling method.

Module Supply: SECI Awards 400 MWp Module Order to Alpex, Tata Power Solar

Also Read

On the other hand, among the FDRE tenders, four firms that won SECI’s 1.5 GW firm and dispatchable renewable energy tender were JSW Neo Energy, Serentica Renewables India, ReNew Solar Power, and Hero Solar Energy. The tariff for this project ranged between ₹5.59/unit and ₹5.60/unit. The tender was issued in July 2023 to supply power to distribution companies in Punjab and Madhya Pradesh. Both land and ISTS connectivity will be under the scope of the selected renewable energy developers. Energy Storage Systems must constitute part of the project. ReNew won 80 MW out of the 200 MW, while Hero Solar secured 120 MW. JSW won 180 MW, and Serentica won 100 MW.