‘Low solar tariffs warrant strict due diligence’

‘Low solar tariffs warrant strict due diligence’

Leading bankers and renewable energy financing experts from multilateral agencies have pointed out that low solar tariffs quoted in reverse auctions should be done after comprehensive assessment to maintain the long-term viability of power generation projects.

Bankers and experts were speaking during a panel-discussion at the second edition of RE-Invest India. The panel had representation from financers such as Power Finance Corporation (PFC), Rural Electrification Corporation (REC), Indian Renewable Energy Development Agency (IREDA), Yes Bank, World Bank and the International Energy Agency.

Ajeet Kumar Agarwal, director-finance, REC, said tariffs should be sustainable to enable debt servicing. While it is true that solar module prices are coming down, the devaluation of the rupee should also be kept in mind, he said.

The latest reverse auction for 500 MW capacity of solar power in Gujarat discovered tariff of Rs 2.44/unit, matching the lowest-ever rate in the country for the fourth time after it was first found in May 2017 for Rajasthan’s Bhadla projects. Read More

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