MNRE issues directive to remove ceiling tariffs from RE auctions

The Ministry of New and Renewable Energy (MNRE) has issued a directive to the Solar Energy Corporation of India (SECI), NTPC Limited and state government departments to remove the tariff cap in renewable energy project auctions. The move is likely to boost participation in project auctions which have witnessed tepid participation in recent months owing to low ceiling tariffs. The ceiling tariffs have ranged from Rs 2.90 per unit by SECI in some solar power tenders in 2019 to Rs 3.50 per unit by some states such as Maharashtra, Rajasthan and Uttar Pradesh. The MNRE has also directed SECI, NTPC and the state power departments to procure renewable energy either through a single renewable source or various combinations of renewable sources with or without storage as per their procurement policies.