The auction had received a positive response from investors with SECI receiving bids of about 4,800 MW for the tender. (Representative image)

The latest solar auction has discovered a tariff of Rs 2.36/unit, a new low. The lowest tariff found previously was Rs 2.44/unit in the July 2018 auction.

The response to the current round of auction for 2,000 MW capacity from domestic and foreign developers has been strong, marking a gradual shift from the recent trend of solar tenders being under-subscribed.

According to sources, Spanish firm Solarpack’s Indian arm quoted the lowest tariff for building 300 MW solar project, marking its entry in its first large-scale solar auction. Avikiran Surya (backed by Italian utility Enel), New York-based Eden Renewables’ Indian unit, a subsidiary of Germany’s Ib Vogt have been awarded 300 MW each, at Rs 2.37/unit. Amp Energy Green bid Rs 2.37/unit for 100 MW capacity. Ayana Renewable Power which is backed by UK’s CDC and ReNew Power have been allotted 300 MW and 400 MW, respectively, against their final quotes of Rs 2.38/unit.

The auction had received a positive response from investors with SECI receiving bids of about 4,800 MW for the tender. As it was with the last major solar tender auctioned by SECI in February, the winning developers are backed mostly by foreign capital. The renewable energy industry is one of the major FDI earners with the sector attracting $4.8 billion foreign capital till 2019 end since FY15.

The country has set a target to raise the capacity of installed renewable energy generation plants from the current level of 86.8 GW to 175 GW by the end of 2022. About 35 GW is under various stages of implementation and 32 GW under various stages of bidding. If the 45.7 GW of hydro and 6.8 GW of nuclear capacities are included, the target under the Paris climate change accord of having 40% of installed power generation capacity from non-fossil fuel sources can be achieved by 2022 itself.