PERSPECTIVE VIEWS ON: LATEST BIDDING TRENDS & TARIFF DISCOVERY
PRELUDE: In order to achieve its renewable energy goals, India must increase its solar energy potential. Besides the policy commitments, the competitiveness of the cost of the tariffs of these renewal energies aids the adoption of the same. The Indian administration is taking up several measures to speed the process up. Moreover, the government also highlights that they are “greening the economy.” There have been a series of latest changes that took place with regards to the state’s solar energy sector, continue reading to get to know of the same. Solar energy tariffs have witnessed a gradual decline over the years in India and globally. In the recent Solar Energy Corporation of India (SECI) auction on November 23, 2020, India set a new record low solar power tariff of ₹ 2/kWh. The tariff-based bidding process was used to select solar power developers for the construction of 1,070 megawatts (MW) of grid-connected solar PV projects in Rajasthan on a “build-own-operate” (BOO) basis. In the recent Gujarat auction, the solar power tariff continued to fall to a new all-time low of ₹ 1.99 or ₹ 2 per kWh. Market recession in the months leading up to two auctions, an influx of major capital into the market, declining cost of capital, competitive offers by PSUs, and positive expectations about the use of new technology and equipment prices all contributed to the low bids. Let us read what are the experts views on the latest bidding trends & tariff discovery
| INDIA
MAY ISSUE 2021 | PG 30
