India’s RE Sector Hits New Low Tariff Milestone at ₹4.98/kWh in SECI’s 630 MW FDRE-IV Auction: JSW Neo, Vena Energy, Hero Solar Among Winners

The Indian renewable energy sector reached a significant milestone today as tariffs for “demand-following” renewable energy supply fell below ₹5 per unit. The Solar Energy Corporation of India (SECI) announced the results of its 630 MW FDRE-IV auction, which saw competitive bidding drive tariffs down to ₹4.98/kWh. This auction attracted notable companies, highlighting the growing interest and investment in India’s renewable energy landscape.

Vena Energy Aura and Hero Solar Energy both secured 100 MW each with bids of ₹4.98/kWh, showcasing the aggressive pricing strategies adopted by leading renewable energy firms to secure large-scale projects.

JSW Neo Energy emerged as a significant player in this auction, securing the largest share with 230 MW at the same tariff of ₹4.98/kWh. This substantial allocation underscores JSW Neo Energy’s commitment to expanding its renewable energy portfolio.

Hexa Climate Solutions and Serentica Renewable India 11 also participated, bidding ₹4.99/kWh for 100 MW each. Notably, Serentica Renewable bid for a total capacity of 250 MW but only secured 100 MW at the specified tariff.

The competitive bids in this auction reflect the robust dynamics of India’s renewable energy market, with companies vying for large capacities at increasingly lower tariffs. This trend indicates the country’s progress toward achieving its renewable energy targets, fostering a sustainable and cost-effective energy landscape.

Last September, SECI issued this tender under the SECI-FDRE-IV program for the supply of 1,260 MW of firm and dispatchable power from renewable energy projects connected to the Inter-State Transmission System (ISTS). However, the tender underwent several amendments, including a reduction in bid capacity from 1,260 MW to 630 MW, an adjustment in the load profile from a 15-minute interval to an hourly basis, and a lowering of the Demand Fulfillment Ratio (DFR) from 90% to 80% on a monthly basis.

The power generated from this project will be procured by BRPL and BYPL, which will receive 625 MW, and Gift City in Gandhinagar, which will receive 5 MW.

The auction results underscore the commitment of SECI and the participating companies to drive the growth of renewable energy in India. As the sector continues to evolve, such competitive pricing strategies will play a crucial role in accelerating the adoption of clean energy solutions nationwide.