Solar power made history in the country last week by receiving a bid of Rs 4.6 a unit. Policy makers cheered the drop – from Rs 17.91 a unit in 2010 to below Rs 5 a unit now.
However, there is nervousness among investors in the segment and the supply chain. Experts say leading project developers are putting aggressive bids for 50-200 Mw projects, to be relevant in the market. The likes of ReNew Power, Hero Future Energies, Azure Power and ACME are bidding close to Rs 5 a unit bid for small projects but not winning.
“Global investors are baffled. The way the tariffs (rates) are falling in the Indian solar market is giving a confusing signal. There are no big projects coming up and no big-ticket investment announced for solar is coming to life,” said a renewable energy analyst with a leading global investment monitoring company. Rates have fallen with each tender in past year but the project capacities bid for have not increased.