Solar tariffs in India reduced to yet another record low at the NTPC-conducted auction of 250 MW at the Kadapa Solar Park in Andhra Pradesh. The project has been awarded to the Indian arm of French clean energy firm Solairedirect SA which quoted levelised tariff of Rs 3.15/KWh. The earlier record of Rs 3.30 per unit levelised tariff for Rewa Ultra Mega Solar Power Project in Madhya Pradesh has been broken by NTPC.
At current rates, solar power generation cost is at par with that of thermal power generation. Solar power tariff has been declining on account of sharply declining prices of solar panels, better structuring of the project that reduces risk for project developers and better currency hedging deals that make financing available at competitive cost. This is a shot in the arm for the Prime Minister Narendra Modi’s vision of providing 175 GW of power through renewable sources by 2022.