The Indian state-run Solar Energy Corporation of India (SECI) has unveiled the results of the latest 2,000 MW auction for Interstate Transmission System (ISTS) solar projects. The average bidding price hit INR2.44/kWh (US$3.5c/kWh) for the first time since May 2017. The winners of the round were Acme Solar (600 MW, bidding price of INR2.44/kWh), Azure Power (600 MW, INR2.53/kWh), Shapoorji Pallonji (250 MW, INR2.52/kWh), Hero and Mahindra (250 MW each). All the 2,000 MW tendered were attributed.
Indian solar tariffs fell in 2017 but went up after the Karnataka Renewable Energy Development Limited (KREDL) auction in February 2018. In the latest auctions, bidding prices went above INR3/kWh in less attractive states or just below this threshold. The SECI was confident that it would secure competitive rates for the tender but not this low.
One explanation could be the sharp decrease of solar developments in China, from which 80% of the Indian solar panels are imported. India also accounted for around 31% of China's solar exports in 2017. At the end of May 2018, the Chinese government cut solar subsidies and stopped to approve new solar projects, which means Chinese solar panels manufacturers had to export their products to sell them, thus leading to a weakening of prices.