Solar Tariffs Hit All-time Low at Rs 2.44 a Unit

Asme won 600 MW with this bid. The company is one of the biggest domestic solar developers with around 875 MW of commissioned solar projects.

In the latest 2000 MW auction conducted by Solar Corporation of India (SECI), solar power tariffs have again touched all-time low at Rs 2.44 per unit. This is lowest the tariffs have ever reached in the auctions conducted by SECI.

Asme won 600 MW with this bid. The company is one of the biggest domestic solar developers with around 875 MW of commissioned solar projects.

In a SECI auction, earlier in 2017, the tariff had fallen to Rs 2.44 per unit for the projects at the Bhadla Solar Park in Rajasthan. However, it increased significantly in subsequent auctions held by the Karnataka Renewable Energy Development Ltd (KREDL). The highest it reached was at around 2,94 and 3.54 per unit in an 860 MW auction across different talukas of Karnataka.

The other winners at the auction were Shapoorji Pallonji, which won 250 MW bidding Rs 2.52 per unit, along with Azure Power, Hero Solar and Mahindra Susten, all three of which bid Rs 2.53 per unit. While Azure Power won 600 MW, Hero and Mahindra got 250 MW each. The remaining 50 MW was awarded to Mahoba Solar at Rs 2.54 per unit. All 2000 MW of projects will be connected directly to the Interstate Transmission System (ISTS).

Industry sources attributed the sharp fall to developments in China, from which around 80% of the solar panels and modules used in Indian solar projects are imported. In end-May, the Chinese government stopped approving further solar projects and cut subsidies for its solar developers, as it felt the sector was expanding too fast.

Source: ET