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SOL AR achieved as low as `2.5 per kWh,” she said. opportunities to invest in the solar industry.
Garg added that while this rate is very According to Vibhuti Garg, co-author of
SunSource to develop solar competitive compared to thermal plant the study by IEEFA and JMK Research &
tariffs, and lucrative for power distribution
Analytics and energy economist at IEEFA, as
project for Indian Oil companies entering long-term power per current market conditions, tariffs below
purchase agreements, this was a floor for
`2.50 per kWh are financially not viable in
SunSource Energy, a leading provider of developers if they want to make money. India’s solar sector. “Developers have already
solar-based energy and storage solutions to SECI and NTPC played a key role in reduced their return expectations from 14
commercial and industrial organisations, building international investor interest, percent to 12 percent, with tariffs being
announced that it will develop a solar according to the report titled ‘Developers achieved as low as `2.5 per kWh,” she said.
power plant for Indian Oil Corporation and Global Investors Snap Up India’s Solar Garg added that while this rate is very
Limited (IndianOil), one of India’s largest Power Tenders – Decoding Tariffs vs Returns competitive compared to thermal plant
corporations. The scope of the project will for Solar Projects in India’. It added that tariffs, and lucrative for power distribution
include the complete EPC of the plant and contractual certainty was in place with companies entering long-term power
its Asset Management for a period of 5 years. counterparty and payment risk assurance purchase agreements, this was a floor for
The project is expected to generate over 22mn from these central government agencies. developers if they want to make money.
kWh of electricity over its lifetime and will According to Jyoti Gulia of JMK Research SECI and NTPC played a key role in
be developed across 10 buildings in the city and co-author of the study, conditions in India building international investor interest,
of Vadodara at IndianOil’s flagship Gujarat are very different to other energy markets. according to the report titled ‘Developers
Refinery and its township. This is one of the “We found a number of competing concerns and Global Investors Snap Up India’s Solar
most complex refineries in India with about in our analysis. Interest rates, module costs, Power Tenders – Decoding Tariffs vs Returns
40 operating units and has a capacity of 13.7 and capacity utilisation factors in particular for Solar Projects in India’. It added that
MMT per year. have a major impact on solar tariffs and contractual certainty was in place with
IndianOil, a Maharatna company, is project returns,” said Gulia. counterparty and payment risk assurance
India’s premium integrated energy major The current solar tariffs in India, which are from these central government agencies.
and is the highest-ranked Indian Public between `2.50- 2.87 per kilowatt hour (kWh),
Sector Undertaking (PSU) in the Fortune have stabilised at rates 20-30 percent below
‘Global 500’ listing for 2019. This project the cost of existing thermal power in India
will be SunSource Energy’s third project for and up to half the price of new coal-fired SOL AR
IndianOil which will help the corporation power, according to a latest study. It added
in its sustainability goals and support India’s that these prices would provide enormous
aspiration to transit to clean energy. Once
developed, the project will offset over 900
tonnes of CO2 emission every year.
SunSource had earlier developed an
innovative 100 kW floating solar project at
IndianOil’s Panipat Refinery and a 1MW
rooftop solar project at the Assam Refinery.
SUNSOURCE ENERGY

SOL AR
Solar tariffs are 30% less

than thermal power in India

The current solar tariffs in India, which are
between `2.50- 2.87 per kilowatt hour (kWh),
have stabilised at rates 20-30 percent below
the cost of existing thermal power in India
and up to half the price of new coal-fired
power, according to a latest study. It added
that these prices would provide enormous
opportunities to invest in the solar industry.
According to Vibhuti Garg, co-author of
the study by IEEFA and JMK Research &
Analytics and energy economist at IEEFA, as
per current market conditions, tariffs below
`2.50 per kWh are financially not viable in
India’s solar sector. “Developers have already
reduced their return expectations from 14
percent to 12 percent, with tariffs being

P12 www. NEWSBASE .com Week 23 10•June•2020