Solar tariff dips to all-time low of Rs. 4 a unit

The solar power tariff dropped to an all-time low of Rs. 4 per unit in bidding for a 750 MW solar power project at Bhadla solar park in Rajasthan.

“Solar Energy Corporation of India (SECI) has finalised a tender issue for 750 MW solar PV projects in Bhadla solar park, Rajasthan, at a record low tariff for power sale of Rs. 4 per unit with VGF (viability gap funding) support,”

“With this SECI has completed auction of more than 5 GW (total being 5,410 MW) under VGF scheme in a span of less than 15 months. Of this power purchase agreements (PPAs) have been signed for 2,520 MW and PSA (power supply agreements) signed for 2,725 MW.”

Earlier in January 2016, the solar power tariff had touched a record low with Finland-based energy firm Fortum Finnsurya Energy quoting Rs. 4.34 a unit to bag the mandate to set up a 70 MW solar plant under NTPC’s Bhadla solar park tender.

Previously, in November 2015 the solar power tariff had dipped to a low of Rs. 4.63 per unit following aggressive bidding by the US-based SunEdison, the world’s biggest developer of renewable energy power plants.