Slight rise in India’s solar tariff: bids at INR 2.65 in Gujarat

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In a recent result declared for the reverse auctions held by Gujarat Urja Vikas Nigam limited; the lowest winning bid was at INR 2.65/kwh. The lowest tariff rates INR 2.44/kwh were bid at the Bhadla Solar park in Rajasthan auctions held by SECI (Solar Energy Corporation of India).

The lowest bid in Gujarat was made by Chennai based GRT Jewelers for 90 MW. The company based in Chennai is in a Jewelry business and is now venturing into Solar. The other bidders who won are Gujarat state electricity corporation, bidding for 75 MW at INR 2.66/kwh and GIPCL (Gujarat Industries Power corporation limited.) also emerged as successful bidders also for 75 MW at INR 2.67/kwh.

The remaining 260 MW were won by one of the major Solar developers in India, Azure Power; which is listed on the NYSE. Azure power is significantly involved in Indian solar, recently also winning 50 MW in India's largest rooftop allocation.

This rise in price can be attributed to the rise in chinese module prices, which still dominate the Indian market. The slight rise can also be related to the fact that a new GST (Goods and Services tax) has been rolled out recently.

But the price increase will not be looked as a concern, as it is still significantly lower compared to conventional powered plants. The solar rates have been decreasing since last 5 years, even with this slight raise, they are quite in range.

Author: Ajinkya Waradpande

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