Solar Power Purchase Agreement Rates In India 2019
The above-mentioned facts indicate that the interest rates on national loans granted to solar projects are between 9.50% and 11.00%, depending on the solvency of solar electricity producers and the average is 10.25%. In its regulation of 11.01.2019, the CERC assessed the interest rate of a temporary loan at 10.41%. Livemint. (2017, March 20). www.livemint.com/Industry/0Cj7S0TtuhZqA2OmCsEQyL/Solar-power-bids-unsustainable-Bridge-to-India.html. Reverse bidding is practiced in the case of Grid Interactive Solar Power. States decide on the reference tariff to provide a basis and then initiate the tendering procedure, while it is the policy that decides the stages of the offer. The Central Electricity Regulatory Commission (CERC) and the State Electricity Regulatory Commissions (SERC) revere the Levelized/Benchmark tariff almost every year (or a few) to adapt to market trends. During the tendering procedure, the rate indicated may vary with the reference tariff. In May 2018, the solar electricity tariff reached a record high, with a private DEVELOPER INR offering 2.44 per unit and slightly increased to INR 2.55 per unit during a tender procedure in June 2019 (the INR tariff cap being 2.65 per unit) (The Economic Times, June 13, 2019). This price of solar electricity is much lower than inr 17.91, the price of solar electricity (feed-in tariff) in 2010 (Center for Science and the Environment, in February 2016). According to experts, the solar tariff has been significantly reduced due to the practice of tendering and the reduction in the costs of photovoltaic (photovoltaic) modules and other devices. The consulting firm Bridge to India points out that Indian developers have often not fully considered the risks (Livemint, March 20, 2017).
To survive the low tariff, the quality of the installation could be compromised. If poor quality equipment corresponding to the low price is used, the facility may not be able to operate at full capacity for a period of 25 years. However, tendering is a good initiative, in which developers have the freedom to determine the tariff and the buyer (which is usually the public distribution company in the case of solar electricity) chooses the lowest tariff. Rooftop power plants by domestic consumers in order to achieve the desired increase in capacity compared to SRTPV units in the state. About 4 gigawatts of the latest solar bids were rejected due to high prices, including one gigawatt from Uttar Pradesh and one 500 megawatts from Gujarat. The problems could be compounded by the introduction of a 25% safeguard duty on imports of solar cells/modules, making solar energy less attractive to states due to the potential price increase. The Ministry of New and Renewable Energy said cost increases due to the tax would be passed on to solar tariffs. The Commission notes that interested parties submitted the proposed operating and management costs without providing the reason and the documents to be examined. The Commission therefore decides to allow operating and management costs of Rs 600/kW for SRTPV units and 4.50 lah/MW for megawatt-scale open-air solar installations, with an annual escalation of 5.72%. In its previous tariff decisions, the Commission had envisaged the CUF of 19% for photovoltaic installations. This order will be signed and issued by the Karnataka Electricity Regulatory Commission on August 1, 2019. and the Commission has adopted such rates in other general tariff provisions.
The Commission therefore decides to authorise a rate of 14%. The proposed cost of capital includes evacuation infrastructure. The available literature, including reports from international organisations such as IRENA, indicates a rapid decrease in the costs of the module from 2015 on. They also show that the module`s cost reductions are affected not only by a significant increase in capacity and utilization, but also, more recently, by improvements in the production process, a more competitive supply chain, technological improvements and efficiency gains related to the increasing introduction of new cellular designs. . . .