India’s Round-the-Clock Renewable Tariff Hits ₹5.25/Unit, Signalling Cost-Competitive Clean Power

RTC Renewable Energy Tariff Discovered at ₹5.25 by SECI

India’s latest round-the-clock (RTC) renewable energy auction has discovered a tariff of ₹5.25 per unit, a figure that the Ministry of New & Renewable Energy (MNRE) says underscores the growing competitiveness of the country’s clean power sector. The bid, conducted by state-run Solar Energy Corporation of India (SECI), was disclosed by MNRE Secretary Santosh Sarangi at the CII’s International Energy Conference and Exhibition.

The RTC tender required 90% assured power availability in each time block, with solar generation capped at 50% of supply during daytime hours—a structure that forces developers to blend solar, wind and energy storage. Sarangi noted that the ministry had anticipated a higher price, but intense competition among developers drove the tariff down to ₹5.25. The result, he said, demonstrates the sector’s ability to supply firm, dispatchable renewable power at rates approaching those of conventional thermal electricity.

In the same address, Sarangi confirmed that India has crossed 300 GW of installed renewable energy capacity and is on course to reach the 500 GW non-fossil fuel target by 2030. He attributed the progress to policy certainty, a growing domestic manufacturing base—now standing at over 213 GW of solar module and 32 GW of cell capacity—and market-creation programmes such as the PM Surya Ghar rooftop solar scheme, which has already connected more than 5 million households. Separately, energy ministers from Sri Lanka and Bhutan at the conference called for deeper cross-border grid integration, with Sri Lanka advocating a broader regional electricity market and Bhutan underscoring the need for common technical standards and smart grids.

Decoding the ₹5.25 Tariff and the Path to 500 GW

The Significance of the ₹5.25 Discovery

The ₹5.25/unit tariff is a benchmark for firm renewable power. Because the RTC tender demands 90% availability in every time block and limits solar’s share to 50% during the day, bidders must assemble a portfolio of wind, solar and battery storage—or potentially pumped hydro—to meet the round-the-clock obligation. Achieving a tariff this low indicates that the cost of integrating storage and managing intermittency has fallen faster than many expected. For large commercial and industrial consumers, as well as state distribution companies (DISCOMs), a firm renewable tariff at this level begins to rival the variable cost of coal-based generation, potentially accelerating procurement.

India’s Manufacturing Might and Decentralised Solar Push

Sarangi’s emphasis on domestic manufacturing is not incidental. With 213 GW of solar module capacity and 32 GW of cell capacity, India is reducing its import dependence for key components, a strategic advantage as global supply chains remain fragile. The indigenisation of roughly 85% of wind energy manufacturing further strengthens the supply chain. Combined with the rapid uptake of the PM Surya Ghar scheme—which has already exceeded 5 million households and targets 10 million—the expanding manufacturing base helps absorb cost pressures that might otherwise raise bid prices. Developers that can source locally may enjoy shorter lead times and better pricing predictability.

Cross-Border Cooperation: The Hardware and the Software

The conference made clear that regional energy integration is moving from rhetoric to planning. Sri Lanka’s energy minister positioned cross-border electricity trading as a realistic near-term prospect under the country’s new Electricity Act, while Bhutan stressed the importance of harmonised regulations and intelligent grid technologies. The proposed India-Sri Lanka grid interconnection is the most concrete near-term project, but the broader vision of connecting the region’s diverse resources—Himalayan hydropower, Indian solar and coastal wind—faces significant regulatory and technical hurdles. Without standardised grid codes, real-time coordination and mutual trust on pricing and dispatch, physical cables will not be enough, as Sarangi himself acknowledged.

What Stakeholders Should Watch in Clean Energy Bids and Regional Grids

• For renewable developers: The ₹5.25 tariff benchmark for RTC power with a 50% daytime solar cap means future bids will likely be evaluated against this level. Integrated developers that can optimise the wind-solar-storage mix and source domestic equipment will have an edge. Any rise in battery storage costs or delays in land acquisition could make such tariffs difficult to sustain, so bid teams must keep a close watch on input prices.
• For power buyers (DISCOMs and large industries): The tariff provides a concrete reference point to compare firm renewable power against short-term and long-term thermal contracts. With the government targeting 500 GW by 2030, procurement decisions that lock in a pipeline of RTC renewable supply can hedge against coal price volatility and future carbon-related costs.
• For policy makers and regulators in South Asia: The calls from Sri Lanka and Bhutan for harmonised regulatory systems, common grid standards and smart grid technologies are not abstract. The proposed India-Sri Lanka interconnection and broader regional market will require detailed commercial agreements, real-time data exchange protocols and cybersecurity frameworks. Early investment in the “software” of cross-border trade can determine whether physical infrastructure delivers affordable electricity or remains underutilised.