As the government continues to focus on increasing renewable energy capacity, solar and wind power tariffs are likely to dip below Rs 2 per unit in the next 2-3 years, a senior official of transmission firm Sterlite Power said.
Union power and renewable energy minister RK Singh has asked all states to bid out loss making areas of electricity distribution companies to frachisees. The minister has sent letters to power ministers of states seeking immediate actions to cut down on financial losses of distribution companies.
Finland-based energy company Fortum is working aggressively to implement its plan to i nvest up to Euro 400 million in India.
January was full of news on the energy front. For instance, the World Future Energy Summit (WFES) was held in Abu Dhabi. 15-17 January.
Solar tariffs rose sharply from their lowest level in the latest solar auction of 860 MW conducted by Karnataka’s Renewable Energy Development Ltd (KREDL). The lowest price was Rs 2.94 per unit, way above the winning tariffs of Rs 2.47 and Rs 2.44 per unit at the last two auctions in Rajasthan in December and May last year respectively.
As the government continues to lay emphasis for increased adoption of renewable energy, the power sector hopes for a much-needed thrust to domestic manufacture of equipments in this year’s Union Budget.
In line with efforts to economize on fossil fuels, plans have been formulated to add 1,000 megawatts, or 1 gigawatt of renewable capacity to the national power grid per annum, a senior official at the Energy Ministry said.
Economic Times reported that the renewable energy sector in India is on the road to consolidation and players with smaller portfolios are looking at exiting the market as returns are shrinking in the face of lower tariffs and uncertainty on the policy front.
India has achieved 20 gw (giga watt) cumulative solar capacity, achieving the milestone four years ahead of the target for 2022 originally set in the National Solar Mission.
The government may revisit incentives and subsidies for the renewable energy sector given the tariffs have been falling to almost match the levels of thermal power.