The recent record low solar tariffs have once again started the murmurs in the in the business circles and in the media about how low tariffs will render this sector ineffective in the long run.
This argument was valid when we were in the midst of falling prices last year in the host of NTPC/SECI project auctions. While, the current Rewa Project pricing is in a very different context, it has not stopped the “low prices danger” brigade who are extending this argument to the whole industry.
The idea behind this article is to dispel such wrong notions and set out how the Rewa Project is different from other solar projects and, therefore, the pricing here may not be the right benchmark for all other projects.Read more
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