The recent Solar Energy Corporation of India (SECI) auction for 1,070 MW of solar projects in the state of Rajasthan (Tranche-III) resulted in India’s lowest solar tariff ever of ₹2 (~$0.0270)/kWh.
Saudi Arabia-based Aljomaih Energy and Water Company and Green Infra Wind Energy Limited, a subsidiary of Singapore-based Sembcorp, won 200 MW and 400 MW of solar projects, respectively, at this tariff.
NTPC Limited, a public sector unit, was the only Indian winner quoting ₹2.01 (~$0.0271)/kWh. The company had placed bids for 600 MW of projects but was only awarded 470 MW through the ‘bucket-filling’ method.
Is this a cause to celebrate or worry about where this may lead? Mercom spoke to developers to find out why the tariff went so low.