Auction in Madhya Pradesh reached one of the worldwide lowest tariffs

In the 750 MW Rewa Solar Park auction in Madhya Pradesh, bids reached a new record low of INR 3.30 ($0.0494)/kWh (levelized tariff over 25 years) over a rupee lower than the previous low tariff of INR 4.34 ($0.065) per kWh, which was recorded in the state of Rajasthan in January 2016. According to consultancy Mercom Capital Group, »the winning bid for first year tariff hit a new low« of INR 2.97 ($0.0444)/kWh and will escalate by INR 0.05 ($0.0007) over 15 years, bringing the levelized tariff to INR 3.30 ($0.0494) kWh over 25 years. In an »extremely competitive auction«, bids submitted were 10 times the tendered volume at 7,500 MW for a tendered capacity of 750 MW, says Mercom.
The solar park is a joint venture between Solar Energy Corporation of India (SECI) and the Government of Madhya Pradesh (Madhya Pradesh Urja Vikas Nigam, MPUVNL). ACME Solar won with the lowest bid to develop a 250 MW project quoting a tariff of INR 2.970 ($0.0444) kWh for the first year and a levelized tariff over 25 years of INR 3.30 ($0.0494)/kWh, followed by Solenergi which won a 250 MW project quoting a first year tariff of INR 2.974 ($0.0444) kWh at a levelized tariff of INR 3.304 ($0.0495) kWh. Mahindra Renewables was third winner for a 250 MW project with a first year tariff of INR 2.979 ($0.0445) kWh and a 25 year levelized tariff of INR 3.309 ($0.0495) kWh.
According to the consultancy, some of the other developers who participated in the auction were Sembcorp Green Infra, SBG Cleantech, Hero Future Energies, Enel Green Power, Solairedirect, ReNew Power, Azure Power, Adani, and Canadian Solar.

Related News