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
Real Estate

Real Estate Booms in Emerging Cities

India's rapid infrastructure expansion is unlocking real estate potential in 30 emerging cities, with land prices projected to grow up to 5.2 times by 2035, according to a report by Colliers. The transformation is driven by the development of key expressways, positioning cities like Nagpur, Jaipur, and Lucknow as rising investment hubs. Nagpur tops the list of emerging cities, bolstered by the 701-km Samruddhi Mahamarg Expressway, which has significantly enhanced connectivity and growth prospects. Jaipur and Lucknow follow closely, with burgeoning micro-markets such as Ajmer Road and Raebarel..

Next Story
Products

Smart Lockers Debut on Delhi-Meerut RRTS

The National Capital Region Transport Corporation (NCRTC) has launched smart lockers at Sahibabad and Ghaziabad stations along the Regional Rapid Transit System (RRTS) corridor, providing passengers with secure storage for luggage and e-commerce parcels. The initiative will be extended across all stations on the corridor in the future. The RRTS, a high-speed rail project spanning 82 kilometers, connects Delhi, Ghaziabad, and Meerut, offering faster and more convenient commutes. Currently, trains operate on a 55-kilometer stretch, covering two stations in Delhi, eight in Ghaziabad, and one in ..

Next Story
Infrastructure Urban

JK Tyre Secures $100M Sustainability-Linked Loan

India’s tyre industry has achieved a significant milestone as JK Tyre secured a $100 million Sustainability-Linked Loan (SLL) from the International Finance Corporation (IFC). The first deal of its kind in the sector will drive the company’s growth plans and strengthen its sustainability initiatives. Boosting Production Capacity The loan allocates $30 million to JK Tyre & Industries Ltd and $70 million to its subsidiary, Cavendish Industries Ltd (CIL). The funds will enhance production at JK Tyre’s Banmore plant in Madhya Pradesh, focusing on Passenger Car Radial (PCR) tyres, and CILâ€..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000