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Decreasing Trend of Renewable Tariff Bid in India prompting Consolidation of Business in Renewable Space

With plunging solar and wind tariff in competitive bidding, Profitability margin of renewable developer is shrinking. However, simultaneous drop in module prices and over production of Chinese module has been a saving grace so far.

However, in order to compete in this low margin scenario, developer can generate revenue through in house EPC (EPC margin) and economy of scale project installation. For both of the case, mobilisation of man power and arrangement of finance needs strong balance sheet and stronger risk appetite of the developer, leading to consolidation of smaller entities by bigger group as the ultimate solution