India’s solar tariffs at an all-time low
POWER & RENEWABLE ENERGY

India’s solar tariffs at an all-time low

India’s solar power tariffs hit low to Rs 2 per kWH at a bid by state-run Solar Energy Corporation of India Ltd (SECI). The previous low India experienced in the solar power tariff was Rs 2.36 per unit. The bid was won by Saudia Arabia’s Aljomaih Energy and Water Co and Singapore-based Sembcorp’s Indian arm, Green Infra Wind Energy Ltd, who won the contracts to build 200 MW and 400 MW solar power projects at Rs 2 per kWH.

NTPC Ltd placed the second-lowest winning bid of Rs 2.01 per unit to acquire a 470MW capacity. This new low could turn out to be quite harmful to the revenue of India. This record-breaking decline in the solar power tariff rate is said to occur due to the pandemic.

One of the primary reasons for the low bid is that fund-starved state electricity distribution companies (discoms) are reluctant to ink contracts with intermediary procurers such as SECI for earlier projects at a higher tariff. The recent low-price bids encourage the discoms to do tariff-shopping and refrain from signing power supply agreements for these projects. Additionally, the debt financing for green energy projects is depreciating as the large Indian banks are not ready to fund power projects at a price less than Rs 3 per unit. Banks are doubting the viability of these projects with scanty tariffs. India currently has 34.6 GW of solar power and intends to have 100 GW of solar capacity by 2022.

India’s solar power tariffs hit low to Rs 2 per kWH at a bid by state-run Solar Energy Corporation of India Ltd (SECI). The previous low India experienced in the solar power tariff was Rs 2.36 per unit. The bid was won by Saudia Arabia’s Aljomaih Energy and Water Co and Singapore-based Sembcorp’s Indian arm, Green Infra Wind Energy Ltd, who won the contracts to build 200 MW and 400 MW solar power projects at Rs 2 per kWH. NTPC Ltd placed the second-lowest winning bid of Rs 2.01 per unit to acquire a 470MW capacity. This new low could turn out to be quite harmful to the revenue of India. This record-breaking decline in the solar power tariff rate is said to occur due to the pandemic. One of the primary reasons for the low bid is that fund-starved state electricity distribution companies (discoms) are reluctant to ink contracts with intermediary procurers such as SECI for earlier projects at a higher tariff. The recent low-price bids encourage the discoms to do tariff-shopping and refrain from signing power supply agreements for these projects. Additionally, the debt financing for green energy projects is depreciating as the large Indian banks are not ready to fund power projects at a price less than Rs 3 per unit. Banks are doubting the viability of these projects with scanty tariffs. India currently has 34.6 GW of solar power and intends to have 100 GW of solar capacity by 2022.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement