Power News We love to talk!

APR 13 2017

Solar tariffs hit a new low of Rs. 3.15/kWh

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 13th APR 2017

Solar power tariffs crashed to a new low of Rs. 3.15 a kWh at the NTPC auctions that concluded on Tuesday for 250 MW at Kadapa, Andhra Pradesh. The previous record was Rs. 3.29 (averaged over 25 years) at the Rewa auctions in February.

With this, French company Solairedirect, which won the rights to put up the solar plants and sell power to NTPC, has created history twice over.

In December 2011, it had won 5 MW of capacity rights at a then-record low tariff of Rs. 7.49 a kWhr, springing a “sub-8 surprise”. Solairedirect has since been acquired by the French utility Engie. The 250 MW adds to its Indian solar portfolio of 450 MW.

For the Kadapa project, the second-best bidder, Actis-backed Ostro Energy, bid just one paisa higher. The other bidders were Canadian Solar Energy ( Rs. 3.39), Greenko Energies ( Rs. 4.09), Azure Power ( Rs. 4.38), Mohoba Solar ( Rs. 4.54) and Mahindra Renewables ( Rs. 4.68).

Sharp decline

That the highest quote was Rs. 4.68 shows how steeply solar tariffs have fallen. In 2015, when SunEdison won 500 MW quoting Rs. 4.63, it was criticised as a maverick whose quote would kill the industry.

The new low tariff was aided in part by a stronger rupee, which makes imports of solar modules cheaper. “On February 10, the rupee was Rs. 66.93 to a dollar; on Tuesday it was Rs. 64.50, notes Balaraman Kapali, founder of forex consultancy Optimal Results.

 

Tags

Andhra Pradesh Bombay Electricity Supply and Transport Solar Energy Tariff NTPC Ltd Energy Azure Power Power solar power Solar MAHINDRA

Related News

  • Solar power cos funding struggle slows transition to green tech  Read more
  • Power sector's dark days  Read more
  • Wind turbine maker Suzlon plans Rs 24,000 crore investment in Gujarat, to halve rupee debt  Read more
  • NPCIL plans to generate 60,000 MW power in next two decades  Read more
  • NTPC extends bid date for Andaman solar plants to August 24 on poor response  Read more
  • Bidders for Rs 2,600 crore power subsidy to be announced tomorrow  Read more
  • Monnet Ispats lenders restart stake sale process  Read more
  • India, US to battle it out at WTO over solar policy  Read more
  • 20 power plants directed to comply with environment standards  Read more
  • Power Grid Corp toinvest Rs 477 crore in two transmission projects  Read more