Solar power tariff remains low at Rs 2.5 per unit in SECI auction

State-owned power giant NTPC, Mahindra Susten, Hero Future Energies and Azure Power Maple on Wednesday emerged as the lowest bidders for 750-MW solar projects, in an auction by the Solar Energy Corporation of India (SECI).

The four firms quoted a tariff of Rs 2.5 per unit each in a reverse auction conducted by the SECI on Wednesday for Rajasthan Tranche II (750 MW) projects, a source said.

The source also said NTPC bid for 160 MW in Rajasthan Tranche-II 750-MW solar tender, while Mahindra Susten showed interest for 200 MW.

Similarly, Hero Future Energies showed interest for 250 MW and Azure Power Maple wanted 100 MW out of this auction.

With this auction, NTPC has won an aggregate solar capacity of 505 MW so far under tariff-based competitive bidding tenders of states, a source said.

The tariffs had hit the lowest rate of Rs 2.44 per in May 2017 for Rajasthan's Bhadla projects. Later also, the tariffs had touched the low of 2.44 per MW at least twice.

India has an ambitious target of having 100 GW solar energy by 2022.