SECI auctions: Rajasthan discovers Rs 2.17/unit tariff

The response to the current round of auction for 1,785 megawatt (MW) of capacity from domestic and foreign developers has been strong.

According to sources, the renewable energy arm of state-run NTPC quoted the lowest tariff for building 500 MW of solar projects.

Rajasthan discovered solar tariff of Rs 2.17/unit on Friday, in the fourth tranche of auctions conducted by the Solar Energy Corporation of India (SECI). In the previous tranche of the auctions for SECI Rajasthan held in November 2020, the tariff discovered was as low as Rs 2/unit. The higher tariff reflects that companies are taking into account the impact of rising costs of commodities and solar panels, while placing their bids.

The response to the current round of auction for 1,785 megawatt (MW) of capacity from domestic and foreign developers has been strong.

According to sources, the renewable energy arm of state-run NTPC quoted the lowest tariff for building 500 MW of solar projects. Calpine Subsico Solar Energy Pvt Ltd, Sprng Natural Power Source Pvt Ltd and Singapore-based Metka EGN quoted the lowest tariff for building 90-MW, 200-MW and 20-MW solar projects, respectively. ReNew Power has been shortlisted for 600 MW against its quoted tariff of Rs 2.18/unit. The remaining capacity put up for auction will be allocated to Acme Solar at Rs 2.18/unit.

Module costs comprise about 60% of the total project expenditure for solar plants, and owing to cheaper rates of imported modules, solar capacity addition has majorly been done through foreign products, especially Chinese. However, from the beginning of FY23, solar module and cell imports will attract a basic customs duty of 40% and 25%, respectively, which are seen to raise overall project costs. As per the recent COP26 announcements, the country has set a target to install 500 giga-watt (GW) of renewable energy capacity by 2030 and much of it is to come from solar plants. The current installed renewable energy capacity in the country in 104 GW, of which 48 GW are solar. Another 50 GW of renewable energy projects are under implementation and 32 GW are in various stages of bidding.

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