Tariffs under $0.034 financially unviable in Indian PV sector
PV developers in India must consider a range of risks to secure reasonable returns on solar projects, according to new research by the Institute for Energy Economics and Financial Analysis and JMK Research & Analytics.
From pv magazine India
Tariffs below INR2.55 ($0.034)/kWh are financially unviable in the Indian solar sector under current market conditions, according to new research by the U.S. Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.
The researchers concluded that India’s solar tariffs have stabilized at INR2.50-2.87/kWh – 20-30% below the cost of existing thermal power in India, and up to half the price of new coal-fired power capacity.
“While this rate is very competitive compared to thermal plant tariffs, and lucrative for power distribution companies entering long-term power purchase agreements, this is a floor for developers if they want to make money,” said co-author Vibhuti Garg, an IEEFA energy economist.
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