“Solar tariff below ₹2 is not viable. Rates will settle in the next 6-8 months”
Coal Insights|March 2021
Dr Santi Pada Gon Chaudhuri is considered to be a pioneer and an expert in solar energy. With over 35 years of experience in the field of Renewable Energy, Dr Chaudhuri is a specialist in photovoltaic system engineering and design and has executed a large number of solar PV projects around India and abroad including designing and setting up India’s first off-grid solar power plant with mini grid. In 2016, he founded the International Solar Innovation Council that aims to catalyze global innovations for global population. He is currently associated with a number of projects and advises the private sector in executing their renewable energy strategy. Sumit Maitra of Coal Insights spoke to him on issues facing the sector.
Sumit Maitra
“Solar tariff below ₹2 is not viable. Rates will settle in the next 6-8 months”

RE sector in India has grown so far through government support, cheap imports of materials and low cost of capital. Will these factors continue to contribute towards the growth of the sector in coming days in terms of generation and storage?

The Atmanirbhar Bharat initiative encourages adoption of our own resources and manufacturing component within the country. While we reduce our imports from countries like China, there could be rise in project costs in the short term.

Solar tariff has fallen below 2 per unit. While it may be viable for NTPC which had put in the bid, the rate is reportedly not viable for many private sector players. What is your view?

The tariff of ₹1.99 is not very realistic and viable and it will go up from there. Depending upon the location of a project, cost of generation would be about ₹3-4 per unit as per our calculations. We will find out the real cost structure in next six to eight months’ time and real pricing of solar power will emerge.

Government has raised duties on imports of materials needed for renewable energy. Will this drive up project costs?

There will be impact of the revised import duties on the tariffs leading to rise in project costs. It has already started happening in recent biddings.

It is believed that many solar projects are not being able to firm up Power Purchase Agreements. What steps can be taken?

This story is from the March 2021 edition of Coal Insights.

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This story is from the March 2021 edition of Coal Insights.

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