2016-09-27
Solar power cost to come down to Rs 4.50/unit by December

At present, solar power tariff is about Rs 6-7 per unit

Centre is working on innovative measures, which will help in cutting down the cost of solar power by 25-35 per cent to Rs 4.50 per unit by December 2015. "You will see solar power in this country at Rs 4.5 per unit," Power, Coal and New and Renewable Energy Minister Piyush Goyal said at a CII event here.

At present, solar power tariff is about Rs 6-7 per unit. "We are looking at bringing in innovative financing solutions and improve the counter party risk and bring down the cost of solar and wind energy," he added. The minister said that there may be escalation in solar power tariff in the future but it would not be significant.

"There may be 1 per cent increment a year in the next 25 years but it will still be less than what we are paying today," Goyal added. The government has also engaged PricewaterhouseCoopers as consultant for formulation of a plan to scale up solar energy in the country.

The work undertaken by PwC include assessing the power scenario and analysing the efficacy of ongoing initiatives by the Ministry of New and Renewable Energy as well as brining out a realistic demand projection and capacity addition plan. The central government plans to increase the solar power capacity to 1,00,000 MW by 2022 from the current 3,000 MW.

On the fossil fuel-front the minister said that the government is working at increasing the production of coking coal used in the steel industry. "We need to rapidly increase our coking coal production and I hope that the country will not have to import coal in the next two and a half years," he added. The minister also said that the one billion tonnes coal production target of Coal India by 2020 is achievable.

(This news story is from The Asian Age)