Source: LiveMint.com, Apr 28, 2017
New Delhi: At a time when addition of coal-fuelled power generation capacity has come to a standstill globally, India is seeing a race to the bottom in solar power prices.
The latest was the record low tariff of Rs3.15 per kilowatt hour (kWh), quoted by France’s Solairedirect SA on 12 April to win the rights to set up 250 megawatt (MW) of solar plants at Kadapa in Andhra Pradesh and sell power to state-run NTPC Ltd. The tariff is expected to fall below Rs3 a unit during auctions for the Bhadla solar parks in Rajasthan.
The previous low was Rs3.30 per unit for a 750MW project at Rewa in Madhya Pradesh. These bids translate to below 5 cents per kWh and rank India at the sixth position globally in terms of the lowest tariff bid awarded. The world’s lowest solar tariff is in Chile (2.91 cents), followed by Dubai (2.99 cents) and Mexico (3.30 cents). The US (3.40 cents) and Saudi Arabia (4.80 cents) rank at the fourth and fifth places, respectively.