Indian PV auction delivers final record low price of $0.0269/kWh

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From pv magazine India

News agency PTI has reported that the 500 MW solar auction by Gujarat Urja Vikas Nigam Ltd has yielded a new record low tariff of INR 1.99 ($0.0269)/kWh in India.

The new tariff is 0.5% lower than the previous record of INR 2.00/kWh secured in a 1.07 GW auction held by the Solar Energy Corporation of India (SECI).  

The 500 MW procurement exercise saw state-run power producer NTPC (200 MW), Aditya Birla Renewable (120 MW), Torrent Power (100 MW), and Saudi Arab’s Aljomaih Energy and Water Co. (80 MW) placing the lowest bids of INR 1.99/kWh each, reported PTI.

GUVNL floated the tender in September. As per the tender document, projects can be set up anywhere in Gujarat. “[The successful] bidders can select the location of their projects and substations from an available-capacity list on the Gujarat Energy Transmission Corporation Limited (GETCO) website,” it read.

Contributing factors

Interestingly, during FY2020-21, solar power tariffs have hit a new low one auction after another. Prices declined to INR 2.36/kWh in June-July 2020 and further to INR 2.00/kWh in November 2020, with INR 1.99/kWh touched recently.

An India Ratings and Research (Ind-Ra) report attributes the continuous decline in Indian solar power tariffs since the start of FY2020-21 to a mix of structural and state-specific factors. 

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