India Secures its Lowest Ever Solar Tariff

  • The tariff was proposed by the Green Infra Wind Energy Ltd and Aljomaih Energy and Water Company and presented the lowest ever tariff for solar electricity in India.

  • All facilities will be added in the Indian state of Rajasthan and will all operate on a build-own-operate’ model.
  • This development comes as Indian’s Prime Minister stated the country’s latest goal of achieving 450GW of renewable energy capacity by 2030.

India recently smashed its record for the lowest solar electricity tariff. The recent 1.07GW auction held by the Solar Energy Corporation of India (SECI) saw Saudi Arab’s Aljomaih Energy and Water Company and Green Infra Wind Energy Ltd. propose a bid of INR 2/kWh ($0.027/kWh) as their solar electricity tariff for grid-connected power supply. This price is about 15 per cent less than the INR 2.36/kWh bid submitted by Spanish developer Solarpack at a 2GW previous auction.

All 1.7GW auctioned were allocated for tariffs of between INR 2-2.01/kWh. Green Infra Wind Energy Ltd (400MW) and Aljomaih Energy and Water Company (200MW) secured their bids for INR 2/kWh each. NTPC bagged the remaining 470MW capacity at INR 2.01/kWh. The capacity will be added in the Indian State of Rajasthan and would all operate on a  build-own-operate’ model.

The Indian Prime Minister Narendra Modi had earlier stated the country’s goal of adding 450GW of renewable energy by 2030. Stakeholders believe that this program has enabled developers to scale and have aided the rapid decrease in tariffs by reinforcing investor confidence in India’s renewable energy sector.

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