The Solar Energy Corporation of India (SECI)’s recent tender to set up 750 MW (Tranche-II) of grid-connected solar projects in Rajasthan saw the lowest (L1) tariff of ₹2.50 (~$0.0359)/kWh at the auction conducted by it today.

A SECI official confirmed the culmination of the auction and the lowest tariff of ₹2.50 (~$0.0359)/kWh. He told Mercom that out of the tendered capacity, only 680 MW of solar PV capacity would be awarded. The techno-commercial bids aggregating 850 MW were qualified, and therefore, 80% of that has been awarded.

The National Thermal Power Corporation (NTPC) was the lowest bidder who bid ₹2.50(~$0.0359)/kWh to set up 160 MW. Mahindra Susten bid at ₹2.50 (~$0.0359)/kWh to set up 200 MW of grid-connected solar PV projects, Hero Future Energies also bid the same tariff to set up 250 MW of projects. Azure Power had bid at ₹2.50(~$0.0359)/kWh to set up 100 MW but will be awarded 70 MW.

SECI had tendered the capacity in March 2019, and in response, bids totaling 1,100 MW had been submitted against the tendered capacity of 750 MW, but only 850 MW of techno-commercial bids qualified for the final round of the bidding process.

This auction result bears a resemblance to the recent auction conducted by SECI to set up 750 MW of solar power projects on a standalone basis in Rajasthan. In that auction, four solar PV project developers – Fortum Solar (250 MW), ACME Solar (250 MW), Sitara Solar (100 MW), and Palimarwar Solar (40 MW), quoted the lowest tariff of ₹2.48 (~$0.0349)/kWh.

The tariff quoted in this auction is ₹0.02 (~$0.00029)/kWh less than the L1 tariff of ₹2.48 (~$0.0349)/kWh quoted in the 750 MW auction held by SECI for Rajasthan.

According to Mercom’s India Solar Tender and Auction Tracker, with the completion of this auction, Rajasthan’s utility-scale project pipeline stands at approximately 3 GW.