India : Renewable energy deals decline on falling solar power tariffs

Declining solar power tariffs are resulting in fewer renewable energy deals on concerns that discoms may not honour electricity offtake commitments for projects awarded at high tariffs

Declining solar power tariffs have resulted in fewer clean energy deals because of concerns that electricity offtake commitments at higher tariffs may not be honoured.

Deal makers and experts say that the proposed transactions for the solar projects with high tariffs are increasingly being put on a back burner in the backdrop of record low tariffs of Rs2.44 per unit recorded last week at Bhadla in Rajasthan. This is due to concerns over whether the electricity distribution companies (discoms) will honour their commitments for projects earlier awarded at high tariffs and not waver on signing power purchase agreements (PPAs).


Source :

Smart Grid Bulletin February 2019

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