Mr. Akshay Kashinath, Business Development, Agami Infra…Shares His Opinion on the REWA 750 MW Solar Project Bid

“The fact that solar power rate has touched a record low in the recent Madhya Pradesh tender ,with the tariff hovering at just above INR 3/unit, has taken solar tariffs in India close to the lowest global tariffs ie 3c/unit reached at Dubai’s solar tender last year. The major drivers for the tumbling tariffs are the falling cost of solar modules and the access to low cost global capital. What is even more interesting is that the tariffs are likely to fall further for the next couple of years which will ensure that India need not invest in any new coal fired plants and also the long term goal of ceasing thermal coal imports looks like a certainty now. The reason that this tender was oversubscribed is because this was a SECI led tender which is seen as far more bankable than State tenders due to the poor financial health of DISCOMs.  The fact that solar is commercially viable at such low tariffs spells good news for the Government’s solar mission and its 100 GW target by 2022.”