The conundrum of solar power costs: Change the face of long-term PPAs

It is imperative that alternate contract structures be explored that balance the long-term risks of the developers with the off takers

Solar power promises to be a source of unlimited and cheap power. Global focus is shifting to renewable power of which solar is expected to play a significant role. India has emerged as a leader in adopting and implementing renewable power.

Given the lower cost coupled with increasing efficiency of solar equipment,  solar tariffs in India which were in double digits in early part of last decade came down to low as Rs. 2.36 in 2020. Though, we still have miles to walk on cost of solar equipment, efficiency of technology including cost of storing.

The reasons for the fall