Lok Sabha Question No. 3015 (UNSTARRED), answered on 2017-08-03
Subject: Solar Power Tariffs
Ministry: NEW AND RENEWABLE ENERGY
Asked by: DEEPENDER SINGH HOODA

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 3015

TO BE ANSWERED ON 03.08.2017

## SOLAR POWER TARIFFS

## 3015. SHRI DEEPENDER SINGH HOODA:

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether the solar power tariffs are at the lowest levels;
- (b) if so, the details of solar power tariffs in Rs./kilowatt-hour during the last five years in the country;
- (c) whether there is any scope to further reduce the solar power tariffs;
- (d) if so, the details thereof;
- (e) whether the Government has compared the solar power tariffs in the country with the tariffs in other countries; and
- (f) if so, the details and the outcome thereof along with the reasons for higher solar tariffs in the country when compared to other countries?

## ANSWER

THE  MINISTER  OF  STATE  FOR  POWER,  COAL,  NEW  &  RENEWABLE  ENERGY  AND  MINES (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

- (a) & (b): The solar power tariffs discovered  through bidding have recently come down to the level of Rs. 2.44/ kWh in May, 2017 for Bhadla Solar project in Rajasthan. The details of solar power tariffs in Rs./kWh during the last five years in the country are given at Annexure.
- (c) & (d): Reduction in solar power tariffs depend upon several factors. These factors  include solar irradiance, project cost, debt equity ratio, cost of financing, return on equity, operation and maintenance cost,  Internal Rate of Return (IRR), guaranteed off take, payment guarantee etc.
- (e) & (f): The solar power tariff depends on various factors like solar irradiance, cost of capital, logistics, IRR, guaranteed off take, payment guarantee, government policies. These parameters may vary from country to country and therefore direct comparison cannot be done. However, the tariffs arrived in few countries in 2016-17 are given below:

|   S.No | Country   | Period      |   Tariff (US cent/kWh) |
|--------|-----------|-------------|------------------------|
|      1 | Abu Dhabi | May-2016    |                   2.99 |
|      2 | Dubai     | May-2016    |                   1.99 |
|      3 | Chile     | August-2016 |                   2.91 |
|      4 | Abu Dhabi | Sept-2016   |                   2.42 |
|      5 | Mexico    | Oct-2016    |                   2.7  |

*******

## ANNEXURE REFERRED TO IN REPLY TO PART (A)  & (B) OF LOK SABHA UNSTARRED QUESTION NO. 3015 FOR 03.08.2017.

## Trend of Solar Tariff

|        | Previous bid results         | Previous bid results   | Previous bid results   | Previous bid results   | Previous bid results   | Previous bid results          |
|--------|------------------------------|------------------------|------------------------|------------------------|------------------------|-------------------------------|
| SI. No | Particulars of Project       | Year                   | Capacity on Offer (MW) | Highest Bid (Rs./KWh)  | Lowest (Rs./KWh)       | Weighted Avg. Price (Rs./KWh) |
| 1      | NSM Batch 1                  | Dec'10                 | 150                    | 12.76                  | 10.95                  | 12.16                         |
| 2      | NSM Batch2                   | Dec'11                 | 350                    | 9.39                   | 7.49                   | 8.79                          |
| 3      | Orissa Phase 1               | Mar'12                 | 25                     | 8.98                   | 7.0                    | 8.36                          |
| 4      | Orissa Phase 2               | Dec'12                 | 25                     | 9.50                   | 7.28                   | 8.73                          |
| 5      | Karnataka                    | Apr'12                 | 60                     | 8.5                    | 7.94                   | 8.34                          |
| 6      | Madhya Pradesh               | Jun'12                 | 125                    | 12.45                  | 7.9                    | 8.05                          |
| 7      | Tamil Nadu                   | Mar'13                 | 150                    | 14.5                   | 5.97                   | 6.48                          |
| 8      | Rajasthan                    | Mar'13                 | 75                     | 8.25                   | 6.45                   | 6.45 (L1)                     |
| 9      | Andhra Pradesh               | Apr'13                 | 226                    | 15.99                  | 6.49                   | 6.49 (L1)                     |
| 10     | Punjab Phase 1               | June'13                | 270                    | 8.75                   | 7.2                    | 8.41                          |
| 11     | Uttar Pradesh Phase 1        | Aug'13                 | 130                    | 9.33                   | 8.01                   | 8.9                           |
| 12     | Karnataka Phase 2            | Aug'13                 | 130                    | 8.05                   | 5.5                    | 6.87                          |
| 13     | Madhya Pradesh Phase 2       | Jan'14                 | 100                    | 6.97                   | 6.47                   | 6.86                          |
| 14     | Andhra Pradesh Phase 2       | Oct'14                 | 500                    | 5.99 (7.03 Level.)     | 5.25 (6.17 Level.)     | 5.75 (6.75 Level.)            |
| 15     | Karnataka                    | Nov'14                 | 500                    | 7.12                   | 6.71                   | 6.94                          |
| 16     | Telangana                    | Nov'14                 | 500                    | 6.9                    | 6.46                   | 6.72                          |
| 17     | Punjab (Capacity 5- 24 MW)   | Feb'15                 | 100                    | 7.45                   | 6.88                   | 7.17                          |
| 18     | Punjab (Capacity 25- 100 MW) | Feb'15                 | 100                    | 7.56                   | 6.88                   | 7.16                          |
| 19     | NTPC Anantapur               | May'15                 | 250                    | -                      | -                      | 6.16 (L1)                     |
| 20     | Uttar Pradesh Phase 2        | June'15                | 215                    | 8.6                    | 7.02                   | 8.04                          |
| 21     | Madhya Pradesh               | June'15                | 300                    | 5.641                  | 5.051                  | 5.36                          |
| 22     | Telangana Group 1            | August'15              | 500                    | 5.8727                 | 5.4991                 | 5.73                          |
| 23     | Telangana Group 2            | August'15              | 1500                   | 5.8877                 | 5.1729                 | 5.62                          |
| 24     | Punjab                       | Sept'15                | 500                    | 5.98                   | 5.09                   | 5.65                          |
| 25     | Uttarakhand                  | Oct' 2015              | 170                    | 5.99                   | 5.57                   | 5.766                         |
| 26     | AP-500MW Bundling            | Nov'2015               | 500                    | 4.63                   | 4.63                   | 4.63                          |

|    | scheme                           |          |     |       |      |                            |
|----|----------------------------------|----------|-----|-------|------|----------------------------|
| 27 | AP-350MW Bundling scheme         | Dec'2015 | 350 | 4.63  | 4.63 | 4.63                       |
| 28 | AP-150MW Bundling scheme(DCR)    | Dec'2015 | 150 | 5.13  | 5.12 | 5.123                      |
| 29 | Haryana(State scheme)            | Dec'2015 | 150 | 5     | 5    | 5.00                       |
| 30 | Rajasthan-420MW Bundling         | Jan'2016 | 420 | 4.36  | 4.34 | 4.351                      |
| 31 | UP-100MW Bundling                | Jan'2016 | 100 | 4.78  | 4.78 | 4.78                       |
| 32 | Rajasthan-100MW Bundling(DCR)    | March'16 | 100 | 5.07  | 5.06 | 5.068                      |
| 33 | Telangan-50MW Bundling(DCR)      | March'16 |  50 | 5.19  | 5.19 | 5.19                       |
| 34 | Jharkhand-200                    | March'16 | 102 | 5.59  | 5.2  | 5.464                      |
| 35 | Jharkhand-1000                   | March'16 | 999 | 5.48  | 5.08 | 5.356                      |
| 36 | Telangan-350MW Bundling          | May'16   | 350 | 4.67  | 4.66 | 4.667                      |
| 37 | Karnataka-500MW Bundling         | May'16   | 500 | 4.8   | 4.78 | 4.79                       |
| 38 | KA-100MW bundling(DCR)           | Sept-16  | 100 | 4.86  | 4.84 | 4.85                       |
| 39 | MP-750 MW(State scheme)          | Feb-17   | 750 | 2.979 | 2.97 | 2.9743 (3.30 Level tariff) |
| 40 | AP-250 MW(Bundling)              | April-17 | 250 | 3.15  | 3.15 | 3.15                       |
| 41 | Rajahthan-250 MW(VGF) Bhadla-IV  | May-17   | 250 | 2.63  | 2.62 | 2.624                      |
| 42 | Rajahthan-500 MW(VGF) Bhadla-III | May-17   | 500 | 2.45  | 2.44 | 2.446                      |