Solar Power Tariff at Record Low

Solar Power Tariffs have fallen to record low as quoted by renewable energy producers at Rewa Urja Mega Solar plant’s reverse auction.

Solar Power Tariffs have fallen to INR 2.97 per kWh, against previous lowest tariff of INR 4.34 per kWh for a solar power plant.

Rewa Ultra Mega Solar Ltd is the world’s largest solar project initiated by Madhya Pradesh Urja Vikas Ltd and Solar Energy Corp of India on 50:50 equity.The solar power generated will be sold to Madhya Pradesh utilities and Delhi metro on open access basis.

Bids were invited through a reverse auction at which the power producers would sell solar power, to develop the solar plant of 750 MW capacity in Rewa, Madhya Pradesh. The solar plant comprises of three units of 250 MW capacity each.

The reverse auction for 750 MW of solar capacity at Rewa started on Thursday and saw initial participation by 20 bidders, including Green Infra Wind Power Project Ltd, SBG Cleantech Ltd and Enel Green Power. Eventually Mahindra Renewables, Acme Solar, Sweden’s Solenergi Power quote lowest solar power tariffs to win contracts at Rewa solar power plant in Madhya Pradesh.

Mahindra Renewables Pvt. Ltd, Acme Solar Holdings Pvt. Ltd and Sweden’s Solenergi Power Pvt. Ltd bid INR 2.979 per kWh, INR 2.97 per kWh and INR 2.974 per kWh respectively to win contracts to build 250MW plants each.

Procurement of renewable energy at such low tariffs will help Government’s green energy drive which aims to slow down dependency on thermal plants and hence reduce greenhouse gas emission.

Growth in Renewable energy India:
The recent growth in Renewable energy has been supported by the fact that the price gap between thermal power and solar power has been narrowing. The cost of solar power has fallen from INR 4.34 per unit to INR 3 per unit. While the average rate of electricity produced by NTPC thermal plants is around INR 3.20 per unit.

India’s demand for the renewable source of energy is expected to increase. India third-largest energy consumer after the USA and China, plans to achieve 175 GW of renewable energy by 2022 as a part of their global climate change commitments.

Current installed capacity of Renewable source plants is around 50,000 MW as on Jan’17.

Source: Power Ministry website
Quantities in MW