Solar Tariffs Drop to a brand-new low of Rs 1.99/ kWh in Latest Gujarat Auction

• The most up to date round of public auctions for 500 MW worth of solar projects in Gujarat has seen tariffs drop to a brand-new low of Rs 1.99/ kWh in India.

The most up to date round of public auctions carried out by the Gujarat Urja Vikas Nigam Limited's (GUVNL), for 500 MW well worth of solar projects to be established in the state, has actually established a new record for the lowest solar tariff in India. With L1 tariffs getting to Rs 1.99/ kWh, the auction defeated the just recently established record Rs 2/kWh which was set last month.

According to industry sources, the L1 tariff was quoted by four prospective buyers which together were awarded 400 MW ability in the public auctions. NTPC Ltd secured the maximum ability under the tender yet once again, with the state-owned power titan safeguarding 200 MW project capability at the L1 tariff. Better, Aditya Birla Renewables, Torrent Power as well as Saudi Arabia's Aljomaih Energy as well as Water Company secured 120 MW, 100 MW and 80 MW capability specifically under the tender at the L1 tariff. For NTPC, this new resurgence in bidding process and also small cost complies with the set up of its subsidiary, NTPC Renewables, where it obtains the advantage of reduced tax obligation prices too. Besides all its other advantages as an incumbent titan with affordable access to funds. An additional winner, Torrent Power is likewise not such a huge surprise, thinking about the groups risk in the power distribution organization in Gujarat.

GUVNL will certainly now become part of power acquisition contracts (PPAs) with the effective bidders for a period of 25 years from the arranged business procedure date (SCOD) of the project.

At the end of September, GUVNL had actually provided the tender for the acquisition of 500 MW of solar power via affordable bidding process. With the solar energy set to be acquired from grid-connected solar photovoltaic or pv power projects to be set up in the state.

According to the request for choice (RfS) paper for the auction, the purpose behind the tender was for the power utility to fulfil the sustainable power acquisition responsibilities (RPO) and also meet future demands of Discoms. "GUVNL means to obtain solar power approximately 500 MW under Phase XI," it stated.

Simply under a month earlier, the solar tariff record was barged in India when in the Solar Energy Corporation of India (SECI) public auctions for its 1070 MW solar tender, two L1 proposals were gotten for then the new least expensive of Rs 2 per kWh. The record low L1 proposal was sent by the very same company i.e. Saudi Arabia's Al Jomaih Energy and also Water Carbon monoxide which has actually likewise bagged 80 MW capability with the brand-new lowest tariff in the Gujarat auctions, and also Sembcorp Energy India subsidiary Green Infra Wind Energy. They protected 200 MW as well as 400 MW ability specifically.

The L1 bid was very closely followed by NTPC ltd which sent the proposal of Rs 2.01/ kWh for 600 MW ability. Nonetheless, the firm will be granted just 470 MW capacity in the tender i.e. the remainder of the 1070 MW ability after the ability for the L1 quotes is alloted.

In August, we had reported on (then) the most recent round of solar public auction causes the state of Gujarat. GUVNL's 700 MW solar tender had actually seen the whole ability awarded to five bidders. With Tata Power as well as Vena Energy submitting the winning bids (Lowest Bids-- L1) of Rs 2.78/ kWh.