New record low solar tariff of Rs 3.30/kWh logged at Rewa Solar Park auction

In the recently concluded 750 MW Rewa Solar Park auction in Madhya Pradesh, bids reached a new record low of Rs 3.30 (~$0.494)/kWh (levelised tariff over 25 years) over a rupee lower than the previous low tariff of Rs 4.34 (~$0.065)/kWh, which was recorded in the state of Rajasthan in January 2016. The winning bid for first year tariff hit a new low at Rs 2.97 (~$0.0444)/kWh and will escalate by Rs 0.05 (~$0.0007) over 15 years, bringing the levelised tariff to Rs 3.30 (~$0.494)/kWh over 25 years.

In an extremely competitive auction, bids submitted were 10x the tendered volume at 7,500 MW for a tendered capacity of 750 MW. Last year the state government of Madhya Pradesh approved extending a payment guarantee for the Rewa Solar Park. The guarantee will ensure against any payment default to projects inside the solar park, stated a Madhya Pradesh Urja Vikas Nigan (MPUVNL) official. The official also added that the solar park is a joint venture of Solar Energy Corporation of India (SECI) and MPUVNL. The payment guarantee and deemed generation benefit were contributing factors in attracting these low bids. The implementing agency (MPUVNL) did not fix an upper limit capacity for bidders — any bidder was able to bid for the entire capacity (750 MW).

ACME Solar won with the lowest bid to develop a 250 MW project (Unit-2) quoting a tariff of Rs 2.970 (~$0.0444)/kWh for the first year and a levelised tariff over 25 years of Rs 3.30/kWh (~$0.0494)/kWh, followed by Solenergi which won a 250 MW project (Unit-3) quoting a first year tariff of Rs 2.974 (~$0.0444)/kWh at a levelised tariff of Rs 3.304 (~$0.0495)/kWh. Mahindra Renewables was the other winner for a 250 MW project (Unit-1) with a first year tariff of Rs 2.979 (~$0.0445)/kWh and a 25 year levelised tariff of Rs 3.309 (~$0.0495)/kWh.

Sembcorp Green Infra, SBG Cleantech, Hero Future Energies, Enel Green Power, Solairedirect, ReNew Power, Azure Power, Adani, and Canadian Solar were some of the other developers who participated in the auction.