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Downward Trend of Renewable Power Tariff, an Opportune?

Both solar and wind power tariff have been showing a decreasing trend and it will not be surprising if it reaches below Rs2/unit. This might be the happy hours for DISCOM’s but it certainly rings a harsh bell for the renewable developer as the entire project might become unviable with shrinking retun.

VGF support might act as saving grace of the sector, however bidding procedure should be carefully monitored by the government, absence of which heavy competition to win the project may turn winner's curse for the developer, making the sector unviable in the long run.