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Competitive Solar Auction In India Keeps Tariffs Under US¢7.2/kWh

Indian and international project developers continue to fight it out in one of the fastest growing solar power markets in the world.

The recent solar power auction in the Indian state of Karnataka saw one of the most competitive bidding in recent times. The auction allocated 500 MW capacity of the planned 2 GW solar power park part of the ambitious ultra mega solar power project scheme announced by the Indian government.

A total of 6 developers managed to win rights to develop the first phase of the solar power park. The winning bids were all within a range less than one US cent. The winning bids were between Rs 4.78/kWh to Rs 4.80/kWh (US¢7.2/kWh).

Interestingly, 5 of the 6 project developers were Indian companies while many major foreign developers, including SunEdison and Canadian Solar, failed to the cut.

Among the successful bidders, Adani Enterprises, Fortum Group (from Finland), ACME Solar, and Tata Power secured 100 MW project each while RattanIndia Power and ReNew Power Ventures won 50 MW project each.

Such a positive response to one of the first auctions under the ultra mega solar power scheme is very encouraging for the Indian government. The scheme is one of the mainstays of the Indian National Solar Mission which aims for 100 GW operational solar power capacity by March 2022.

Continued and active participation by the Indian developers is also a testament to the fact that it is not just the foreign developers that are propelling the low-cost solar power revolution in India.