The results from the bidding for the Bhadla solar power project in Rajasthan, where solar power tariffs plummeted to Rs 2.62 per kWh(unit), will change the dynamics of India’s power sector. In mid-2014, India’s grid-connected solar power capacity was only 2,632 MW, but the cost of power generation had declined from Rs18/kWh (unit) in 2011 to Rs 7.5/kWh in 2014, providing an inkling of what lay ahead. Subsequently, the cost of solar modules have fallen from 58-60 cents/watt in 2014 to just 36 cents in 2017. The modules account for nearly 60 per cent of a solar power project’s total cost and the decline in their prices along with fierce bidding, mostly by foreign companies, can be attributed to these record bids. The central and state governments must allay these fears of solar companies and ensure timely payments.

Source: dna May 12, 2017 02:48 UTC