India's SECI discovers record-low ₹5.25/unit tariff for round-the-clock renewable energy

India's SECI has discovered a record-low tariff of ₹5.25 per unit for round-the-clock renewable energy, positioning it against firm power sources like thermal and nuclear.

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India's Solar Energy Corporation of India (SECI) has discovered a tariff of ₹5.25 per unit for round-the-clock renewable energy (RE RTC) through a reverse auction, a rate that positions it competitively against firm power sources such as thermal and nuclear. The tariff was discovered late on Thursday, and Renewable Energy Secretary Santosh Kumar Sarangi announced it on Friday.

Sarangi expressed surprise at the outcome, saying, "We expected the price to be very high, but thanks to the competitive spirit among our developers, we discovered a rate of ₹5.25 per unit for RE RTC." The tender, which SECI floated, is intended to compare renewable energy with firm power sources like thermal and nuclear, marking a step toward integrating renewables into the baseload power mix.

The tender includes specific supply requirements to ensure reliability. During peak hours, at least 90% of the required power must be delivered in each time block. During solar hours, the requirement is 50% to 60% of the required power. In the remaining periods, at least 70% of the required power must be supplied. These conditions are designed to make renewable energy more dependable, addressing one of the key challenges of intermittent sources.

Earlier this week, Sarangi had highlighted the significance of the tender, calling it a milestone for firm and reliable green energy, particularly for data centres. He made these remarks while speaking at the CII International Energy Conference and Exhibition. The record-low tariff is seen as a positive signal for the adoption of round-the-clock renewable energy, which could help India reduce its reliance on fossil fuels while meeting the growing demand for reliable power.

Industry observers have described the tariff as record low, while others have called it competitive, reflecting the strong interest from developers. The discovery of such a low rate could pave the way for more such tenders in the future, potentially accelerating the transition to clean energy in India.