Solar Power Tariff Dips to Rs 1.99/unit in GUVNL Auction

The solar power tariff has once again dropped to an all-time low level. This time it dropped to Rs 1.99 per unit in an auction of projects of 500 MW capacity by Gujarat Urja Vikas Nigam Ltd (GUVNL).

“Now the solar power tariff has dropped to a new low of Rs 1.99 per unit in an auction for 500MW projects by GUVNL last week,” a source told, quoted PTI.

State-run power giant NTPC (200MW), Torrent Power (100MW), Saudi Arabian firm Al Jomaih Energy and Water Co. (80MW) and Aditya Birla Renewable (120) have emerged as the lowest bidders by quoting Rs 1.99 per unit tariff under the auction, the source added.

Earlier, state-owned Solar Energy Corporation of India (SECI) had discovered a new record low tariff of Rs 2/kWh in its tender auction for setting up of 1070 MW grid-connected solar photovoltaic (PV) power projects in Rajasthan (Tranche-III).

Under this tariff-based competitive bidding, the two companies namely Saudi Arabia-based Aljomaih Energy and Water Co., and Singapore-based Sembcorp’s Green Infra Wind Energy Ltd had quoted a lowest tariff of Rs 2/kWh for capacity of 200 MW and 400 MW respectively. While, state-owned NTPC had won 470 MW of capacity out of 600 MW of applied capacity at the rate of Rs 2.01/kWh tariff.

The bid submission for SECI’s 1070 MW solar power projects tender for Rajasthan was closed on November 23, 2020, in which total fourteen companies had applied for 4,350 MW of capacity and oversubscribed by 3,280 MW.

The previous lowest tariff discovered by SECI stood at Rs 2.36/kWh, which was 15.3 per cent higher from the new record tariff.