For the first time in India, solar bids have breached the Rs.3 (~$0.046)/kWh mark in the 250 MW Bhadla Phase IV Solar Park auction under the National Solar Mission (NSM). The current low bid is Rs.2.75 (~$0.043)/kWh and the auction is still in progress at the time of this report. The Rewa winning bid came in at Rs.2.97 (~$0.044)/kWh but that tariff came with an escalation of Rs.0.05 (~$0.0007) over 15 years, bringing the levelized tariff to Rs.3.30 (~$0.049)/kWh over 25 years.

A base price of Rs.3.01 (~$0.047)/kWh for the Bhadla Phase IV auction was set by the Solar Energy Corporation of India (SECI), which received technical bids aggregating 3,250 MW, the tender being oversubscribed by 13 times.

“After analyzing the recent bids, a base price of Rs.3.01 (~$0.047)/kWh has been fixed. Developers are willing to quote low as projects are becoming feasible with technology is maturing,” stated a SECI official concerned with this particular auction. The reverse auction has begun today.

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Raj Prabhu Raj is a recognized thought leader in clean energy markets where his work has influenced policies worldwide. He has a deep understanding of regulatory policy and clean energy markets and his market and opinion pieces are regularly published on both MercomIndia.com and other leading publications globally. Raj is also a regular speaker and presenter on clean energy policy and finance topics at conferences worldwide. Raj attended the KLE College of Science in Bangalore, India for physics and chemistry, and holds a Bachelor of Science Degree in Hotel and Institutional Management from Johnson and Wales University, Rhode Island. More articles from Raj Prabhu.