Distribution companies want to rework pacts as solar tariffs hit new low
Solar tariffs have fallen so dramatically that tariffs which were at record lows just three months ago no longer appeal to distribution companies, creating a big challenge for renewable energy companies.
In April, French solar developer SolaireDirect won 250 MW in an NTPCBSE 0.52 % conducted auction at Kadapah Solar Park in Andhra Pradesh, quoting a tariff of Rs 3.15 per kwH. At the time, this was a record low, beating the previous record of an average tariff of Rs 3.30 per kwH set . At the time, this was a record low, beating the previous record of an average tariff of Rs 3.30 per kwH set in the auction conducted at Rewa Solar Park in Madhya Pradesh in February.
But Andhra Pradesh does not even want to renegotiate – it is simply not interested any more. Andhra Pradesh added maximum amount of solar installed capacity among states in 2016-17, a sizeable 1,294.26 MW, achieving a cumulative installation of 1,867 MW by end March.