Connect with us

Hi, what are you looking for?

Make in India logo with a backdrop of solar panels (Source)

Clean Power

Solar PV Tariff Bid In India Falls To Fresh Low Of US¢6.5/kWh

Another auction, another record low bid for solar power projects in India.

Once again, an international project developer has placed a record-low tariff bid for solar PV project in India. The new low of US¢6.5 per kWh has been discovered in the competitive auctions under India’s National Solar Mission. The new tariff is around 8% higher than the global record low tariff of US¢5.98 per kWh bid by a AWCA Power-led consortium for 200 MW phase II of the Mohammed bin Rashid Al Maktoum solar park.

The tariff bids was placed by a subsidiary of Fortum Energy. The auction was organised by India’s largest power generator NTPC Limited. The projects allocated will form part of the Badla solar power park that will have total capacity of 420 MW.

A number of factors worked in favour of this correction in tariff, even though most experts had believed that the bids had now bottomed out. Rajasthan is the leading state in India in terms of installed solar power capacity and boasts over 1.2 GW capacity, of the total 5 GW capacity operational in India.

Rajasthan has attractive land lease policies and land cost, which forms a major part of the total capital cost, and which is lower than in most states. As several power plants are already operational and are concentrated in a few specific areas of the state, the power evacuation system is also robust for new projects.

Late last year, SunEdison and SB Energy quoted the lowest tariffs of US¢6.9 per kWh in two separate auctions. SunEdison bagged a 500 MW project in an auction also organised by NTPC Limited in Andhra Pradesh. SB Energy, a company backed by SoftBank, Foxconn and Bharti Enterprises, secured 350 MW capacity in neighbouring state of Telangana.

SunEdison had stated that since the long-term power purchase agreement will be signed with a government-owned company (NTPC Limited) financial institutions might reduce the cost of debt.

International projects developers are leading the way in driving down the tariffs as they are likely to have comparatively easier access to low-cost finance from development banks.

Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

New Podcast: Cruise Talks Autonomous Driving Tech, Regulations, & Auto Design

New Podcast: Battery Mineral Mining Policies & Regional Trends

Written By

An avid follower of latest developments in the Indian renewable energy sector.


#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.


Support our work today!


Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports


EV Sales Charts, Graphs, & Stats


Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like


Old(ish) Audi e-tron batteries are getting another life in India. In Uttar Pradesh, a German-Indian startup founded by Berlin-based Prodip Chatterjee, Nunam, has turned...

Clean Power

Tata Power is India’s largest integrated power utility, and it is putting more of its weight behind solar now — rooftop solar, no less....

Clean Transport

Mumbai railway stations will be getting EV charging stations as part of a new initiative to promote e-mobility in the Mumbai region. The program...

Clean Power

To ensure only quality equipment is used at solar power projects and, possibly, provide some protection to domestic manufacturers from a flood of Chinese...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.