India plans 20GW solar power project tender

A government source said the world's largest solar tender is to help lower solar tariffs in the country and spur local equipment manufacturing such as solar panels as part of an ambitious 175GW clean energy target by 2022 where 100GW comes from solar projects.

A senior government official said plans to introduce a megaproject bid to boost solar equipment manufacturing in India and lower electricity tariffs substantially. The government will release contracts to developers who are quoting the lowest price at which they will sell electricity in the auction process to be connected to the grid.

"The tender is being conceptualized by the Ministry of New and Renewable Energy (MNRE) .This contract will be awarded once with the developer to build the project gradually," said a government official who declined to be named.

The solar tariff fell to a record low of Rs2.44 per kilowatt hour (kWh) in May and rose to Rs2.65 per kWh in an auction by the Gujarat government in September. This rate is lower than the average power level generated by coal-fired projects.