Solar power tariff drops to record low

Solar power tariff drops to record low
Solar power tariff has dropped to a record low of Rs 2.62 per unit in the auction conducted for Bhadla solar park in Rajasthan.

“Another milestone towards Prime Minister Narendra Modi's vision of clean affordable power for all: Bhadla Solar Park achieves tariff of Rs 2.62/unit”, Union Minister for Power and New & Renewable Energy Piyush Goyal tweeted on Wednesday.

This price is lower than the average rate of power generated by the coal-fuelled power generation utility, NTPC Ltd, at Rs 3.20 per unit.

“Bhadla Ph-IV Solar Park results in a historic lowering of tariffs. Phelan Energy (50MW) and Avaada Power (100 MW) have bagged projects at Rs 2.62/unit. Softbank Cleantech has won 100 MW capacity at Rs 2.63/unit,” said an official from the Ministry of New and Renewable Energy.

The solar power tariff going down drastically from Rs 10.95-12.76 per unit in 2010-11. The previous low was Rs 3.15 per unit in an auction last month to set up 250MW of capacity at Kadapa in Andhra Pradesh.

Earlier in February, the lower capital expenditure and cheaper credit had pulled down solar tariff to a new low of Rs 2.97 per unit for the first year in an auction conducted for 750 MW capacity in Rewa Solar Park in Madhya Pradesh. However, the levelised tariff for Rewa project has worked out to be Rs 3.30 per unit. Experts, however, believe that the prices may further fall with the increased competition among companies.

Officials from the New and Renewable Ministry in their presentation to Prime Minister Narendra Modi early this week said the total renewable generation capacity has crossed 57 GigaWatts, with an increase of 24.5% being registered in the last fiscal year.

The capacity addition in solar energy in 2016-17 was the highest-ever. The Prime Minister also suggested the officials to set up model solar cities, where the power requirement is fulfilled solely by solar energy.

India aims to generate 175 gigawatts (GW) of renewable energy by 2022 and in which 100GW from solar power projects.

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