SECI’s 1,785 MW Solar Auction Gets Lowest Tariff of ₹2.17/kWh

NTPC, Sprng Energy, UPC Renewables, Metka EGN Singapore Pte, ReNew Power, and ACME Solar were declared winners in the Solar Energy Corporation of India’s (SECI) auction for 1,785 MW of solar power projects (Tranche IV) in Rajasthan.
NTPC Renewable Energy (NTPC Limited subsidiary) won a capacity of 500 MW, Sprng Energy Natural Power Source (a special purpose vehicle (SPV) of Sprng Energy) won 200 MW, Calpine Subsico Solar Energy (an SPV of UPC Renewables) 90 MW, and Metka EGN Singapore Pte 20 MW, each quoting 2.17 (~$0.0289)/kWh. ReNew Solar Power won 600 MW, while ACME Solar, which had bid for the entire 1,785 MW of capacity, was allotted 375 MW. Both the companies quoted 2.18 (~$0.02904/kWh.
The auction discovered the second-lowest tariff in 2021. The previous low tariff in 2021 was  2.14 (~$0.028)/kWh at the auction for 500 MW of projects at the Neemuch Solar Park in Madhya Pradesh.
SECI issued the tender in March this year. In May 2021, SECI revised the bid submission deadline and extended it to May 21, 2021, from April 15, 2021.
According to the tender document, the bidders must comply with the technical parameters. One of the modifications states that the cells and modules used in the project under the RfS will have to be sourced only from the models and manufacturers included in the ‘approved list of models and manufacturers (ALMM),’ as published by the Ministry of New and Renewable Energy (MNRE).
The tender received a massive response from the bidders and was oversubscribed by 9.3 GW, according to Mercom sources.
SECI’s previous auction for 1,070 MW of solar projects in Rajasthan had then set a record-low tariff of ?2 (~$0.0270)/kWh (Tranche-III) in November 2020. The tariff was quoted by Al jomaiah Energy and Water Company and Green Infra Wind Energy Limited, a subsidiary of Sembcorp, for 200 MW and 400 MW of solar projects, respectively. NTPC Limited quoted the second-lowest bid at ?2.01 (~$0.0272)/kWh for 600 MW of projects but were only allocated 470 MW. Sprng Ujjvala Energy Private Limited quoted ?2.02 (~$0.0273)/kWh for 300 MW of projects. SJVN Limited quoted ?2.07 (~$0.0279)/kWh for 250 MW.