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US $ Based Tariff For Solar Power, Maybe A Reality Soon

As part of the government’s plan to push solar electricity by paying for it in dollars, power trading company PTC India Ltd. may call for bids from solar project developers on behalf of the MNRE.

Source: Live Mint

SNP Insights

The denomination of tariff on US$ basis might see the solar tariff to come down to level of INR 4.37 from current INR 6.7, which would mark the grid parity for solar power. Secondly the cost of setting up of the solar power plant will come down to INR 45 Million/ MW from current INR 60 Million/ MW, which will result in increased investments to the sector. Further, PTC calling for bids and making purchase guarantee, would make the solar projects bankable ensuring a smooth cash flow throughout the agreement period.