Andhra Pradesh, Apri 12: Tariffs for solar power hit a historical low on Tuesday. After 15 long hours of bidding, for the 20 MW mega solar power park in Kadappa, Andhra Pradesh, the lowest tariff that emerged was Rs 3.15 per unit for 25 years, with a catch of no escalation.
The winning company for the project offered by NTPC, was France-based Solairedirect. What really stands out about the rate, is that it is the lowest rate received for such a power project in the country. The previous benchmark was for the 750-Mw Rewa solar park in Madhya Pradesh. Among other bidders for the project were heavyweights like Mahindra and Mahindra, Greenko Energy, Azure Power etc.
One of the main reasons for the falling prices of solar power, is that costs of panels have gone down significantly. Another the reason is aggressive competition for such projects.According to a previous report, Vinay Goyal, CEO of Ganges Internationale Pvt Ltd, a solar EPC, said, “Global prices of the solar module might fall 20 percent this year. Currently, the price of module manufacturers of Tier-1 lies between 31-33 cents. Due to the oversupply in China, the price of the module is expected to fall down between 27-30 cents in the second half of 2017.”
Similarly, the report also pointed out ‘Bridge to India’ as having recently stated, “Pace of new utility-scale solar tender announcements and project allocations slowed down considerably at just 4.2 Gw and 6 Gw, respectively, down 70 per cent and 33 per cent, respectively, over the last year. This downward trend in new allocations is likely to continue, perhaps for another six months, as the government seems to have gone back to the drawing board to incorporate learnings from the Rewa tender and India’s first wind tender.”