Record Low Solar Tariff in India Puts Thermal and Wind Power on Notice

The Rewa 750MW solar tender in Madhya Pradesh, India, saw tariffs plunge to a record low of INR 2.97/kWh (US$0.044) after a lengthy online auction. Acme Solar, Mahindra Renewables and Solenergi Power won 250MW each. The tariff has an escalation of INR 0.05/kWh (US$0.0007) for 15 years, resulting in a levelized tariff of INR 3.29/kWh (US$0.049) for 25 years, 24% below the previous low of INR 4.34/kWh (US$0.065) as seen in NTPC’s Rajasthan tender in January 2016. But adjusted for lower cost of equipment and changes in other parameters, the fall is only about 2%.