5 Lowest Solar Tariffs of 2020

The COVID-19 pandemic has affected project deadlines, availability of labor, and component supplies in 2020. However, solar tariffs continue to fall, with the lowest ever recorded tariffs discovered just this month.

Over 12.8 GW of solar projects were auctioned in 2020, and the lowest discovered tariff in these auctions was ₹1.99 ($0.0270)/kWh – a 19.8% decrease compared to the lowest tariff of ₹2.48 ($0.0329)/kWh in 2019.

Here is Mercom’s list of the lowest five solar tariffs awarded through 2020.

₹2.50/kWh at SECI’s Auction of 1.2 GW of ISTS Connected Solar Projects

The Solar Energy Corporation of India (SECI) had auctioned 1.2 GW of the interstate transmission system (ISTS) connected solar projects (Tranche VIII) in February.

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In the auction, SBE Renewables Fifteen Private Limited (SoftBank), AMP Energy Green, and Eden Renewable Alma won capacities of 600 MW, 100 MW, and 300 MW respectively at a tariff of ₹2.50 ($0.0348)/kWh. ReNew Power won only 200 MW capacity out of the 600 MW it bid at ₹2.51 ($0.035)/kWh under the bucket-filling method.

₹2.43/kWh in NTPC’s 1.2 GW Solar Auction

O2 Power, Azure Power, Tata Power, and Amp Energy together won 1,170 MW of projects in NTPC Limited’s auction for 1.2 GW of ISTS connected solar projects in August.

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O2 Power, Azure Power, and Tata Power were awarded 400 MW, 300 MW, and 370 MW of projects, respectively, at a tariff of ₹2.43 (~$0.0325)/kWh. Amp Energy secured 100 MW of projects at ₹2.44 (~$0.0327)/kWh.

₹2.36/kWh in SECI’s 2 GW Solar Auction

The SECI auction for 2 GW of ISTS-connected solar projects (Tranche IX) saw a record-low bid of ₹2.36 (~$0.0313)/kWh in June.

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Solarpack India quoted the lowest tariff.  Avikaran Surya India Private Limited (Enel Green Power), Amp Energy Green Private Limited, Eden Renewables, and ib vogt Singapore Private Limited quoted the second-lowest tariff of ₹2.37 (~$0.0314)/kWh. AMP Energy won 100 MW of projects, while the other companies won 300 MW of projects each.

₹2/kWh in SECI’s 1,070 MW Solar Auction

The SECI auction for 1,070 MW (Tranche-III) of solar projects in Rajasthan discovered a new low tariff of ₹2 (~$0.0270)/kWh in November.

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The tariff was about 15.3% lower than SECI’s previous record low of ₹2.36 (~$0.0319)/kWh discovered in its auction for 2 GW of ISTS-connected solar projects (Tranche IX) in June.

SECI had received bids from 14 companies for a total of 4,350 MW, leaving the tender oversubscribed by 3,280 MW. Eight of the quoted tariffs were below the previous record low of ₹2.36 (~$0.0319)/kWh.

The lowest tariff was quoted by Al Jomaih Energy and Water Company and Green Infra Wind Energy Limited, a subsidiary of Sembcorp, for 200 MW and 400 MW of solar projects, respectively. NTPC Limited quoted the second-lowest bid at ₹2.01 (~$0.0272)/kWh for 600 MW of projects but were only awarded 470 MW under the bucket-filling method.

₹1.99/kWh in Gujarat’s 500 MW Auction

The Gujarat Urja Vikas Nigam Limited’s (GUVNL) (Phase XI) auction for 500 MW of solar projects has set a new record. In this auction in December, the lowest tariff reached ₹1.99 (~$0.0270)/kWh, according to Mercom’s sources.

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This tariff is a paisa less than SECI’s previous low of ₹2 (~$0.027)/kWh discovered in its auction for 1,070 MW GW of grid-connected solar projects (Tranche III) in Rajasthan in November.

The tariff of ₹1.99 (~$0.0270)/kWh was quoted by NTPC Limited for 200 MW, Torrent Power Limited for 100 MW, Al Jomaih Energy and Water Company Limited for 80 MW, and Aditya Birla Renewables for 120 MW, respectively.