According to reports, in what could be termed as an historical event for the Indian solar sector, the first year tariff for the 750 Megawatt Rewa solar park, achieved through reverse bidding, has gone to record low level of Rs 2.97 per unit.
The lowest first year tariff for unit I of the solar power plant has been quoted by Mahindra Renewables at Rs 2.979 while for the second unit, Acme Solar has become the successful bidder with a tariff quote of Rs 2.970.
For the third unit of the solar ultra mega power plant, a global firm named Solenberg has won the bidding round with a first year tariff quote of Rs 2.974 a unit.
“India marches on towards realising the clean energy vision of PM Narendra Modi. First year solar tariff bids at record low of Rs 2.97/unit,” power, coal, renewable energy and mines minister Piyush Goyal tweeted today.
There would be a 5 paise escalation of for 15 years and 33 paisa would be added for the levelised tariff.
According to Bridge to India Managing Director Vinay Rustagi, getting tariffs below Rs 3 is a revolutionary milestone for the sector.
“It shows the fundamental attraction of solar technology, which we believe is still in its early stages of growth. Further growth in volume and technology advancements will continue to make solar power ever cheaper,“ Rustagi said.
He said every bulk power purchase including power distribution companies will now be forced to examine their approach to energy procurement.
“There is also another very important lesson for them – the key to bringing down tariffs lies in reducing risks for developers. This tender is very unique as it offers almost complete payment and evacuation risk protection, two biggest challenges for the sector,“ he said.
Rewa ulta mega solar, a 50:50 joint venture of Madhya Pradesh Urja Vikas Ltd and Solar Energy Corp of India will sell the electricity produced to Madhya Pradesh utilities and Delhi Metro Rail on an open access basis.
Earlier, a total of 20 bidders, both national and international, submitted their proposals to develop the park. The bids closed on January 23 and the proposals were evaluated and two of the bidders were dropped.