Two competitive auctions for a solar power capacity, cumulating to 750 megawatts, recently brought in new record low solar tariff bids in India. The solar power capacity offered at the Bhadla solar power park in Rajasthan reportedly saw fierce competition between Indian and foreign developers. The previous lowest tariff bid was set at INR3.15/kWh (4.9¢/kWh) and both of the auctions beat this bid, which was discovered in a 250-megawatt auction that was held last month.
The Bhadla solar power park comprises of micro power projects which are developed by various companies inclusive of NTPC Limited, India’s largest power generator. The recent auctions saw projects developed by Adani Enterprises (250-megawatts) and IL&FS (500-megawatts) and the auctions were conducted by Solar Energy Corporation of India (SECI), a government-owned company. The tenders for both of these projects were reported to have received an overpowering response.
The first auction for the 250-megawatts solar power project is reported to have received 14 bids which were in the range of INR 2.62/kWh (4.1¢/kWh) and INR 3.59/kWh (5.6¢/kWh). Avaada Energy, India-based energy and power company and Phelan Energy Group, South African-based solar energy group are reported to have secured 100-megawatts and 50-megawatts at INR 2.62/kWh (4.1¢/kWh). It is also reported that SB Cleantech, which is majorly-controlled by Softbank won the rights to develop 100-megawatts at INR 2.63/kWh (4.1¢/kWh).
These two marathon bids were around 9.2% lower than the previous lowest solar power tariff in India. This was namely for the 250-megawatt auction for the Kadapa solar power park in Andhra Pradesh. The entire capacity was secured by a subsidiary of French utility Engie, Solardirect.
The two companies securing a total of 500-megawatt capacity broke the previous record of INR 2.62/kWh (4.1¢/kWh) within two days. Meanwhile, Acme Cleantech Solutions secured 200-megawatts at INR 2.44/kWh (3.8¢/kWh) and SB Cleantech secured rights to develop 300-megawatts at INR 2.45/kWh (3.8¢/kWh).
It is reported that Acme Cleantech Solutions had previously secured 250-megawatts at INR 3.30/kWh (5.1¢/kWh) with the first-year tariff of INR 2.97/kWh (4.6¢/kWh) in the Rewa solar park auction. SB Cleantech has surfaced as a prominent entity in a short span of time in the Indian solar power market. The company has recently commissioned a massive solar power project in India.