Indian renewable energy deals decline on falling solar power tariffs

• 6 years ago (2017-05-15)
• David Flin

Asia 846 Solar 242

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Declining solar power tariffs in India have resulted in fewer clean energy deals because of concerns that electricity offtake commitments at higher tariffs may not be honoured.

Experts have said that the proposed transactions for solar projects with high tariffs are being delayed as a result of record low tariffs of 3.8 US cents/unit recorded last week at Bhadla in Rajasthan. This is due to concerns over whether the electricity distribution companies will honour their commitments for projects earlier awarded at higher tariffs.

Solar power tariffs have declined sharply because of failing prices of solar modules, and because large overseas developers have invested heavily in the Indian solar power market. India’s solar power generation has more than tripled since May 2014, from 2650 MW to over 10,000 MW.