Tarrif capped at Rs 4/unit for 750 MW of solar projects in Rajasthan

Solar Energy Corporation of India Ltd. (SECI), the central nodal agency for tendering solar power projects has capped tariff at Rs 4/unit for 750 MW of projects in Rajasthan under the National Solar Mission (NSM) Phase-II, Batch-IV.

The bidding is called under the VGF scheme of the government. This would be the reference price for solar power projects, over and above of which the companies would bid for ‘viability gap funding’ from the government.

Business Standard has reported earlier that government is planing to award majority of projects through the VGF mode to stabilise the market.

This comes in wake of constantly falling tariffs in competitive bidding for a solar power projects. The last bidding for solar power park of 500 MW in Andhra Pradesh witnessed lowest bid of Rs 4.63 per unit by US solar company SunEdison.

The total capacity of 750 MW is divided in two Solar Parks in Rajasthan viz. 500 MW in Bhadla Phase-III and 250 MW in Bhadla Phase-IV Solar Parks respectively.

500 MW in Bhadla Phase-III Solar Park being developed by M/s Saurya Urja Company of Rajasthan Limited. The total capacity of 500 MW is divided into five project of 5x 100 MW each. 

250 MW in Bhadla Phase-IV Solar Park being developed by M/s Adani Renewable Energy Park Rajasthan Limited. The total capacity of 250 MW is divided into five project of 50 MW each. 

Both Solar Park Implementing Agencies (SPIAs) are Joint Venture Companies with Rajasthan Renewable Energy Corporation Limited (Govt. of Rajasthan) as one of the JV partner. 

With this 750 MW in Rajasthan, SECI has brought out tenders for more than 5 GW (total being 5410 MW) under the 2000 MW & 5000 MW VGF Schemes in a span of 15 months. 

Out of 5410 MW capacity, PPAs have been signed for 2520 MW and PSAs have been signed for 2995 MW.