Falling solar power cost leading to pricing disputes

Falling solar power cost leading to pricing disputes

The steep fall in the cost of producing solar power in recent years is now causing conflicts between different arms of state and central governments over the buying price of solar power.

On November 2, the Appellate Tribunal for Electricity (Aptel) intervened with a stay order on a dispute between Karnataka’s power regulator and its discoms over the tariff at which to buy solar power from the Solar Corporation of India (Seci), an arm of the ministry of new and renewable energy (MNRE).

Seci sought a tariff of Rs 4.50 per unit, but Karnataka Electricity Regulatory Commission’s (Kerc) refused approval for state discoms to buy at that rate, saying discoms should pay no more than Rs 4.36 per unit.

Seci appealed against the order to Aptel, which in turn has stayed the matter pending a final decision, and in the interim, directed the discoms to pay Rs 4.50 per unit as Seci wanted. Read More

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