Welspun and NLC India Achieve INR 2.34/Unit Discovered Tariff in GUVNL 625 MW Solar Auction

Welspun New Energy Ltd. and NLC India Ltd. have emerged as winners in the 625 MWp solar power auction conducted by Gujarat Urja Vikas Nigam Ltd. (GUVNL), securing a record-low discovered tariff of INR 2.34 per unit.

The auction witnessed strong market participation, with 23 companies competing in the tariff-based bidding process. It witnessed strong competition among renewable energy developers, with tariffs ranging between INR 2.34 and INR 2.60 per unit.

The high level of interest highlights the growing confidence among corporate developers and investors in India’s long-term renewable energy market. Industry observers note that stable policy frameworks, improving project economics, and better equity internal rates of return (IRRs) are encouraging greater participation in large-scale solar tenders.

The lowest discovered tariff of INR 2.34 per unit was quoted by multiple developers, including Welspun Renewable Energy Private Limited and NLC India Renewables Ltd., each bidding for 300 MW capacity. Other bidders quoting the same tariff included Megodyna Renewables Energy Pvt. Ltd. (100 MW), Krishna Choprindia Pvt. Ltd.(50 MW), and Sunsure Green Energy Pvt. Ltd. (100 MW).

Several developers submitted slightly higher bids. Terra Ocean Ltd. quoted INR 2.35 per unit for 300 MW, while bids of INR 2.45 per unit were submitted by Soleos Energy Pvt. Ltd. (50 MW) and Heliac Power India Pvt. Ltd. (40 MW). Additional bids included INR 2.47 per unit by Sajju Industries Pvt. Ltd. (100 MW).

Higher tariffs in the auction included INR 2.50 per unit quoted by MB Power (Madhya Pradesh) Ltd. (300 MW) and KPI Green Energy Ltd. (500 MW). Other participants included Spring Energy Pvt. Ltd. at INR 2.54 per unit, SAEL Industries Ltd.at INR 2.56 per unit, PNC Infratech Ltd. at INR 2.58 per unit, and Waaree Forever Energies Pvt. Ltd.quoting the highest bid of INR 2.60 per unit for 600 MW.

Overall, the auction results highlight intense competition among solar developers and demonstrate the continued decline in solar tariffs in India, driven by technological improvements, economies of scale, and increasing investor confidence in the country’s renewable energy sector.

The aggressive tariff discovered in the auction also places focus on project execution strategies, particularly since the projects are expected to use Domestic Content Requirement (DCR) solar modules. Developers will need to rely on technological innovation, efficient supply chains, and cost optimisation across the solar value chain to ensure successful implementation while maintaining financial viability.

Experts believe that such competitive tariffs reflect the maturing dynamics of India’s solar market, where scale, financing access, and technological advancements continue to push prices lower. These benchmarks are also seen as critical for enabling the economics of emerging sectors such as green hydrogen, where affordable renewable electricity is a key requirement to achieve production costs close to USD 2 per kilogram.

With large-scale auctions continuing across states and central agencies, India’s renewable energy sector is increasingly demonstrating its ability to combine scale, competitive pricing, and execution capability, reinforcing the country’s position as one of the fastest-growing clean energy markets globally.