At the recent 750 MW Rewa solar park auction in Madhya Pradesh, solar tariffs witnessed a dramatic crash. Levelized tariff for 25 years hit the record low of of Rs.3.29/kWh — a full Rs. 1 lower than previous record of Rs.4.34/KWh at a Rajasthan auction in Jan 2016. The low for first year tariff was Rs.2.97/kWh.
As this Business Line article points, such low tariffs has got the wind industry a little worried. According a leading wind industry manufacturer, wind energy at the moment can compete maximum down to Rs.4.20/kWh, though future technology improvements are expected to bring that figure down by 10%.
More key, the wind industry is looking forward to more happening on the policy front for wind-solar hybrid production. A clear policy environment will help the wind industry work with the solar industry instead of competing with them. As non-firm renewable energy in the Indian grid rapidly increases, hybrid production will help with balancing the grid.