SECI Discovers Record Tariff of $0.068 per kWh in Firm Renewable Energy

The Solar Energy Corporation of India (SECI) announced on August 24 the award of its FDRE-IX tender for 1,500 MW at a tariff of 5.99 rupees per kWh, equivalent to $0.068, according to pv magazine. It is the lowest tariff on record for a firm renewable contract with storage in India.

FDRE stands for firm and dispatchable renewable energy: solar and wind projects connected to the interstate grid that couple storage to guarantee delivery during four hours of peak demand, the evening block when solar stops generating. The tender was launched in June and requires 1,500 MW, equivalent to 6,000 MWh of assured daily supply. Mercom India reported the award following the reverse auction on August 21, with the full capacity distributed among three developers. The figure matters for the region: at $0.068 per kWh, the combination of solar and storage approaches the cost of a gas peaker plant, the classic benchmark for firm capacity.

The distribution of the 1,500 MW, according to Renewable Watch, breaks down as follows:

- Waaree Forever Energies, a subsidiary of Waaree Energies, secured 700 MW at 5.99 rupees per kWh, the lowest bid. - NTPC Renewable Energy Ltd obtained 500 MW at 6.00 rupees per kWh. - ACME Solar Holdings received the remaining 300 MW at the same tariff.

The three allocations cover the 6,000 MWh of daily supply required by the contract, equivalent to four hours of operation at full capacity. Bids clustered within a narrow range of 5.99 to 6.00 rupees per kWh, reflecting tight competition among developers. SECI Director General Akash Tripathi said the result demonstrates that renewables can be firm, reliable, and competitive even during peak demand hours.

The price becomes known days after SECI closed its round-the-clock renewable (RE-RTC) auction at 5.25 rupees per kWh. For buyers in the region exploring firm capacity contracts with batteries, the sub-6 rupees per kWh range sets the benchmark for their upcoming tenders.

This article was drafted with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.