Indian solar tariffs sink to new low of INR 1.99/kWh - report

Solar tariffs in India reached a new low of INR 1.99 (USD 0.027/EUR 0.022) per kWh in a tender targeting 500 MW in Gujarat, the Economic Times reports.

The new record was achieved just a month after the previous low of INR 2/kWh that was quoted in a tender by the government’s nodal agency Solar Energy Corporation of India Ltd (SECI). Over 300 MW of bids were received during the competitive procurement process.

In the tender run by Gujarat's distribution company Gujarat Urja Vikas Nigam Ltd (GUVNL), state-run power producer NTPC Ltd (BOM:532555) won 200 MW, Torrent Power secured 100 MW, while Saudi Arabia-based Al Jomaih Energy and Water Co and Aditya Birla Renewables were awarded 80 MW and 120 MW, respectively. All of them placed the winning bid of INR 1.99/kWh.

According to industry watchers quoted by the newspaper, the further drop in auction tariffs is caused by the fierce competition in the solar industry, coupled with lower interest rates and declining solar equipment prices.

The most recent auction for solar projects in Gujarat was held in August and discovered a winning tariff of INR 2.78/kWh.

(INR 10 = USD 0.136/EUR 0.111)

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