Commentary

India solar auction attracts 16 bids below 7c/kWh

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A solar auction for 130MW of large-scale PV in the Indian state of Rajasthan has seen the winning bids return to extreme lows of (AUD) 8c/kWh (INR 4.35/kWh, USD 0.065) this week.

PV Tech reports that the auction, held by India’s largest utility, NTPC, was for capacity outside solar parks and the three successful players were all Indian firms – see table below.

The three bids come in just a touch higher than the lowest ever solar bid in India, which came from Finland’s Fortum Finnsurya Energy at a price of INR4.34/kWh – also for capacity in Rajasthan.

The world’s record lowest ever large-scale solar bid – below (USD) 3c/kWh ($US30/MWh) – was recorded in Dubai, in a May auction for 800MW of solar capacity.

As we reported here, the record low bid came from a consortium comprising Abu Dhabi renewable energy developer Masdar and Spanish developer FRV, which was acquired by Saudi Arabia’s Abdul Latif Jameel (ALJ) group in 2015, and which has built two large-scale solar farms in Australia – the 20MW Royalla facility in the ACT and the 56MW Moree solar farm in NSW.

In the Rajasthan auction, the report notes that all 16 developers who bid in were willing to offer below five rupees per unit.

“This was an NTPC [auction] so it was expected that it would be aggressive,” said Jasmeet Khurana, associate director of consulting at Bridge to India.

However, Khurana said the bids were still slightly lower than expected.

Sophie Vorrath

Sophie is editor of One Step Off The Grid and deputy editor of its sister site, Renew Economy. She is the co-host of the Solar Insiders Podcast. Sophie has been writing about clean energy for more than a decade.

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