The Solar Energy Corporation of India (SECI) has auctioned 750 MW solar power capacity it tendered in August 2018 with the lowest bid (L1) going down to INR 2.48 ($0.0349) per kWh (see 750 MW PV Tender In Rajasthan). In fact, 4 developers quoted the same tariff in the auction as against the ceiling of INR 2.93 ($0.0427) per kWh, reported Mercom India Research.
While Fortum Solar and ACME Solar won 250 MW each, Palimarwar Solar House of the LNB Group and Sitara Solar Energy of UPC Renewables secured 40 MW and 100 MW, respectively for the same L1 bid.
ReNew Power that quoted INR 2.55 ($0.0359) per kWh to emerge as the lowest bidder in SECI's 1.2 GW auction in February 2019, won 110 MW for INR 2.49 ($0.0351) per kWh. It originally had bid for 360 MW capacity.
India solar players Azure Power, Mahindra Susten, Rays Power Infra and Sembcorp's Green Infra Wind Energy lost out in the race, the tariffs they quoted in the range of INR 2.50 to INR 2.56 ($0.0352 to $0.0360) per kWh were too high.
A SECI official told Mercom about the reasons that brought down the cost in the auction: The state of Rajasthan has great transmission infrastructure and presence of ample substations and the procurer is the state itself, which ensures transmission and cheap land in areas with high solar irradiance.