BUSINESS

SOLAR POWER

Tariff at record low, drops to Rs. 4.34 a unit

Solar tariffs fell to a historic low of Rs.4.34 per kilowatt hour following the auction of a 70 MW project in Rajasthan, with the winning bid going to Finnish solar power company Fortum Energy. “A lower tariff was expected as supply conditions remain favourable due to a combination of low energy costs, access to finance, and module suppliers seeking purchase commitments. But it’s a pleasant surprise to see as many as 10 bidders quote below the record lowest tariff achieved in Andhra Pradesh NSM just a month back,” Kameswara Rao, Partner, Energy and Utilities at PwC, told The Hindu. “Solar tariffs have fallen to an unprecedented low of Rs 4.34 / kWhr through reverse auction for one of six projects of 70 MW each to be put up in Rajasthan under the National Solar Mission (NSM),” the government announced on Tuesday. — Special Correspondent

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