The Solar Energy Corporation of India Ltd. (SECI) has successfully concluded the auction for 1,200 MW of interstate transmission system (ISTS)-connected solar projects to be developed across India.

SECI had tendered the capacity under tranche-IV in February 2019. The tariff ceiling for this tender was set at ₹2.65 (~$0.038)/kWh. The tender was well received and was oversubscribed by 900 MW.

In this auction, the lowest (L1) tariff of ₹2.54 (~$0.0366)/kWh was quoted by Ayana Renewables to develop 300 MW of projects. A top executive at Ayana confirmed this development to Mercom.

According to a government official, “In all, four bidders had quoted a tariff of ₹2.54 (~$0.0366)/kWh while two quoted a tariff of ₹2.55 (~$0.0367)/kWh. Five bidders will be awarded projects.”

The official further added, “Aayana, ReNew Power, and Azure quoted a tariff of ₹2.54/kWh to set up 300 MW solar PV capacity each and will be awarded the same. Mahindra Susten also quoted a tariff of ₹2.54/kWh to set up 250 MW, and Avaada Energy quoted ₹2.55/kWh to set up 350 MW of solar PV capacity but will be awarded only 50 MW due to the bucket-filling method applied to award contracts.”

SB Energy had quoted a tariff to set up 300 MW of solar PV capacity but could not make the cut due to the bucket filling method.

The L1 tariff quoted in this auction is ₹0.01 (~$0.00014)/kWh less than the L1 tariff of ₹2.55 (~$0.0367)/kWh quoted in SECI’s previous solar PV auction for 1,200 MW solar PV capacity.

The tariffs for ISTS-connected solar PV projects seem to have stabilized around the ₹2.55 (~$0.0367)/kWh mark as these projects are appealing to developers because of ISTS charges waiver. Another reason could be the good credit rating of SECI, which would make the lenders more confident.