India’s solar tariffs falling to a record low of ₹1.99 per unit!!!
The Adani green has bid for the entire 6.4 gigawatts (GW) capacity aimed at powering the farms of Andhra Pradesh as part of India’s largest solar tender. The tender comes against the backdrop of India’s solar tariffs falling to a record low of ₹1.99 per unit at an auction conducted by Gujarat Urja Vikas Nigam Ltd in December. The rates are expected to decline further due to lower cost of financing and investors being flush with capital.
Adani Green Energy Ltd (AGEL) has a renewable portfolio of more than 14.19 GW, of which 2.95GW is operational. NTPC, one of the world’s biggest thermal power producers, has mapped up an aggressive playbook for the green energy sector. NTPC and Torrent Power were among firms that bid the lowest solar tariff of ₹1.99 per unit in Gujarat. NTPC, India’s largest power generation utility, has already decided against building new coal-fueled power projects. It is also looking to buy at least 1GW of operational solar power projects as part of its strategy to have a 32GW clean energy portfolio by 2032. It has 1GW of operational clean energy capacity with an additional 3GW in the pipeline, and plans to add at least 5GW solar capacity in two years.
These new tariffs have been legally challenged by the developers. Renegotiating auctioned tariffs could hurt India’s ability to attract global investors and also damage the sanctity of India’s tendering process at a time the country is running the world’s largest green energy programmer.
India has to plan to achieve 175GW by 2022 and 450GW by 2030 as part of its climate commitments. Of this, while 89GW has been installed, 48GW is under implementation, and another 26GW is being bid out.
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