New Record-Low Benchmark PV Tariff in India

• The Solar Energy Corporation of India (SECI) has issued 2 tenders for a total of 750 MW of solar power capacity in the Bhadla Solar Park of Rajasthan with new record low reserve price
• The reserve price was decreased by 11% from 4.5 INR to 4 INR ($0.0602) per kWh; bidders with the lowest VGF quote will be considered
• Winning bid might be lower than the new benchmark price
• The 750 MW capacity auction - split in two parts (250 & 500 MW) - is expected to be completed within 1.5 months
•  India's Ministry of New and Renewable Energy (MNRE)  has fixed this new solar power reserve tariff as rate benchmark for all VGF-based tenders in states where solar tariff reserve rates were previously at 4.50 INR per kWh ($0.0677)

Solar Energy Corporation of India (SECI) has reduced the reserve price by 11% down to 4.00 INR per kWh ($0.0602) for a 750 MW PV tender. Bidders seeking lowest viability gap funding (VGF) will be considered for the projects.

SECI, the implementing agency for the 100 GW Jawaharlal Nehru National Solar Mission (JNNSM), has invited online bids to set up 750 MW at the Bhadla Solar Park in the state of Rajasthan. The entire capacity of that tender is part of Phase-II, Batch-IV of the JNNSM and will come up in two batches –  500 MW in Bhadla Phase-III and 250 MW in Bhadla Phase-IV.

The Bhadla Solar Park is planned to reach a total capacity of 2,255 MW. Phase-I reportedly has 75 MW capacity. Under Phase-II, 680 MW is planned, while Phase-III envisions a capacity of 1,000 MW, which is being developed through a joint venture between the Government of Rajasthan and Infrastructure Leasing & Financial Services Limited (IL&FS). Phase-IV will be developed by JV company Adani Renewable Energy Park Rajasthan Ltd.

In January 2016, the lowest solar power tariff was also reported in Bhadla Solar Park when Finish utility Fortum won a 70 MW capacity for a tariff of 4.35 INR/kWh.

SECI MD Ashvini Kumar said that the government has fixed solar power tariff at the rate of 4.00 INR per kWh ($0.0602) as benchmark rate for all tenders in states where solar tariff reserve rates were previously at 4.50 INR per kWh ($0.0677) in various auctions, according to Indian business paper Mint.

Regarding the Bhadla Solar Park tender, Kumar was quoted as saying, "This auction will be completed in one and a half months. Now, 4.00 INR per kWh is the benchmark. The tariff can be lower than this rate also as it depends on the bidders to quote the price."

With this tender, SECI says it has auctioned 5,410 MW of solar PV under the VGF scheme in less than 15 months. Power purchase agreements have been signed for 2,520 MW capacity while power supply agreements amount to 2,725 MW.

Check here for details on the tenders – 250 MW and 500 MW.