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.

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?