Solar tariffs have again dipped to a low of Rs 2.44 per unit for a third time, after it had jumped by more than a rupee in a recent bid.
Previously, the tariffs had hit the lowest rate of Rs 2.44 per in May 2017 for Rajasthan's Bhadla projects, while the second was during the reverse auction of 2000 MW capacity last week.
According to sources, ACME Solar bagged a 600 MW project with the lowest tariff quote in the recent auction.
Azure Power, quoting at Rs 2.64 per unit bagged 300 MW project, while Canadian Solar has secured 200 MW project with a tariff of Rs 2.70 per unit.
Adani's Mahoba Solar (UP) and ReNew Solar Power have been awarded 300 MW and 500 MW, respectively, all at Rs 2.71 per unit.
SBG Cleantech, a joint venture between Japan's SoftBank Group Corp, India's Bharti Enterprises and Taiwan's Foxconn Technology Group, which had bid for the highest capacity of 1800 MW, bagged a contract for 1100 MW quoting a tariff of Rs 2.71 per unit.
The Solar Energy Corporation of India will sign 25-year power purchase agreements with the winning bidders and sell the power to electricity distribution utilities.
The ceiling tariff for the latest tender has been set at Rs 2.93 per unit.
With the latest two bids (2000 MW and 3000 MW), the government has awarded contracts for 5000 MW in a single month.
"For the latest bid of 3000 MW, though the lowest is Rs 2.44, the average is over Rs 2.60. This shows that power producers with patience and capital can reach higher tariffs," Gensol Group Director Anmol Jaggi told PTI here.
He further said that at current depressed module prices, innovation in module technology and 21 months of execution timeline, there are excellent returns to be made.
According to reports, the recent 1000 MW capacity auction conducted by Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) discovered tariff of Rs 3.48 per unit which is higher than Rs 2.71 quoted in the auction for the 3000 MW capacity by SECI.
Recently, the government has revised its target of adding renewable capacity to 225 GW by 2022 from the earlier 175 GW.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)