Higher land and borrowing costs have kept solar power tariff above Rs 3 per unit in the 500 MW capacity auction conducted by Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), a source said.
The Rs 3.17 per unit tariff is higher than lowest ever tariff of Rs 2.44 per unit discovered in solar energy project auctions in the country. Recently, in September, bidders quoted Rs 2.44 per unit for 500 MW solar capacities auctioned by Gujarat Urja Vikas Nigam.
Earlier, in June Rs 2.70 per unit was quoted in an auction conducted by the Solar Energy Corporation of India (SECI) for 750 MW Solar PV earlier. Solar tariff had touched an all-time low of Rs 2.44 per unit last year in May.
The source said the UPNEDA conducted the auction for 50 GW capacities, allowing bidders to quote multiple bids for different packages and the tariff remained higher at Rs 3.17 per unit due to expensive land prices in Uttar Pradesh. Read more