Solar power tariff at record low of Rs 4.34 a unit

Competitive bidding for allotting solar power projects has brought the solar power tariff to a record low Rs 4.34 a unit in the country.

The solar power tariff fell to an all-time low, with Finland-based energy firm Fortum Finnsurya Energy quoting Rs 4.34 to bag the mandate to set up a 70 MW solar plant under the National Thermal Power Corporation’s (NTPC) Bhadla Solar Park tender.

“This (Rs 4.34 a unit) is the lowest solar tariff so far in India. This has happened because of confidence in the balance sheet of the NTPC and solar parks that come with all clearances and confidence in the market," Joint Secretary of New and Renewable Energy Tarun Kapoor said.

The NTPC on Monday conducted reverse bidding for 420 MW solar power projects to be set up at the Bhadla Solar Park-II near Jodhpur in Rajasthan.

The other winners who participated in the bidding for different blocks in same location included Rising Sun Energy Pvt Ltd (two blocks for Rs 4.35 a unit), Solairedirect (two blocks for Rs 4.35 a unit) and Yarrow Infrastructure (one block for Rs 4.36).