Unravelling India’s 2.44 rupee solar tariff: Refined sensibility or a churlish audacity?
By Ali Imran Naqvi, vice president, Gensol Group, and Payal Saxena, senior consultant, Strategic Advisory Team, at Gensol Group
July 18, 2018 Email
Indian solar tariffs have matched their lowest ever in the most recent 2GW and 3GW auctions for Interstate Transmission System (ISTS)-connected projects, hitting INR2.44/kWh (US$0.036) for the first time since May 2017. Prima facie, this might seem to be churlish, but it is certainly emblematic of some refined sensibility of the Indian solar and financial markets.
Is there a way to decipher such a bafflingly low tariff? Absolutely yes; in fact, there is a very rudimentary method to unearthing this mystery – it is called levelized cost of energy or LCOE, in short.