Current Insights

Declining solar power tariff tempts tariff negotiation between Discoms and Developers

November 15, 2018 02:57 PM

Tagged Sector(s) : Renewable,Power

Solar Power tariff trend over the past years have shown a decline in tariff due to reducing cost of solar panels in international markets. In purview of falling tariff in solar auctions, Discoms have started negotiation with developers to reduce PPA tariff and have shown their reluctancy to honour PPA at the agreed rate. Discoms have shown concern on purchase of solar power at the capped regulated tariff by their respective state regulatory commissions.

Had this PPA uncertainty continued in coming years, developers and Investors would lose faith in the solar segment. Disinterest of Investors in the segment would prove to be fatal setback for growth & development of solar as ambitiously planned by government.

Article By:
Amit Sharma


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