Cap on solar tariffs a threat to capacity addition plans, project viability: Ind-Ra


Cap on solar tariffs a threat to capacity addition plans, project viability: Ind-Ra

Any cap on solar power tariffs in future auctions could dampen free market sentiment and prove to be an Achilles heel for the plans of the Ministry of New and Renewable Energy (MNRE) to achieve the solar power capacity target of 100 GW by 2022, India Ratings and Research (Ind-Ra) said today.

“Confusion over applicable safeguard duty, increased project cost due to the depreciating Indian rupee against the US dollar and a lower margin of safety (due to highly competitive tariffs) remain the key challenges to the solar power industry’s growth,” Ind-Ra said in a statement.

Auctions for at least 3.9 GW capacity were scrapped during 5MFY19 (five months this fiscal) compared with about 11.86 GW of fresh capacity auctioned during the period. Read More

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