After Indian solar tariffs breached a jaw dropping Rs 2.90 per unit earlier this week in a Rajasthan auction, prices have dropped to yet another record low in the same location. Solar power tariff dropped to hit a new low of Rs 2.44 per unit in the auction conducted for Bhadla solar park. Not long ago we wrote about the on going bidding wars for the Bhadla solar power park in Rajasthan. Solar power tariffs have been falling steadily for quite some time now. In April, levelised solar power tariff had dropped to all-time low of Rs 3.15 per unit at an auction of a 250 MW project at Kadapa in Andhra Pradesh. The tumbling price also increases the chances that India will meet the renewable energy targets it has set earlier.
More on the record low solar prices:
- The Bhadla project has a total capacity of 750 megawatt (MW) at two parks. Saurya Urja Company of Rajasthan Ltd is building the 500 MW park. Adani Renewable Energy Park Rajasthan Ltd is developing the other 250 MW part of the project. The record low bidding came for the 500 MW park
- First and foremost, ACME Solar Holdings won the bid by quoting Rs 2.44 per unit for 200 MW
- Furthermore, SBG Cleantech One quoted Rs 2.45 per unit and got the contract for building the remaining 300 MW. Both firms have been active in recent auctions and have each broken solar tariff records in India before
- SBG Cleantech is a joint venture between SoftBank, Bharti Enterprises and Foxconn technology group. Of the total 750 MW auctioned in two tenders, conducted by the Solar Energy Corporation of India (DECI), SoftBank’s India clean energy venture scooped up a total of 400 MW. The aggressively cheap bidding can be seen as an attempt to fit into the flourishing solar market of India
- 7-8% higher yield in Rajasthan due to better solar radiation conditions and cheaper solar module prices in international market are some of the reasons why bidding at this auction went this low
In the last six years, the tariff has fallen by almost 80%, a significant drop across the world. The year 2017 has brought the prices further down, aided by aggressive tariffs quoted by foreign firms. India’s intensive solar tariff drops and exponential market growth has attracted many foreign investors in past the few months. India’s goal to install 175 GW of renewable capacity by year 2022 doesn’t seem that difficult now.
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