Solar power tariff is likely to come down closer to the cost of conventional power sources due to technological advancement and increase efficiency.
Recently, Rewa Ultra Mega Solar Ltd (RUMSL) has bid a record low tariff of Rs 3.3/kwh levelised over power purchase agreement PPA period of 25 years for a 750 MW plant through a reverse-auction.
Solar power prices have been coming down over the years from `6.5 per kilowatt hour (kwh) or a unit in 2014 to Rs 5/kwh in 2016. As against this, the average feed-in tariff for wind energy and competitively bid thermal tariff (in the last 24 months) remains at `4.8/kwh and `4-5/kwh respectively.
According to ICRA, solar photovoltaic (PV) projects are also more attractive with their relatively shorter construction periods within the renewable energy segment, while conventional thermal projects face much higher execution risks because of the possible delays in acquiring land and statutory clearances. Read More…