The huge decline in solar power tariffs in India has caught the eye of its neighbor Bangladesh, which now hopes to import electricity generated by Indian solar power projects.
Bangladesh government is looking to buy 2 gigawatts of solar power from Indian projects. Country already buys a substantial volume of power from India.
Almost all, if not all, power that India exports to Bangladesh is sourced from thermal power plants. We have already covered in an earlier analysis that several of the new solar power projects in India are cheaper than existing thermal power plants.
With the sharp decline in solar power bids in certain states of India, other states have decided to procure power from projects located in those states.
After tariff bids collapsed sharply for a solar power park in the state of Rajasthan, the government of Uttar Pradesh approached the Solar Energy Corporation of India to have a power purchase agreement with upcoming solar projects in Rajasthan. Consequently, 750 megawatts (AC) of capacity was auctioned in Rajasthan. Power generated from this capacity will be supplied to Uttar Pradesh .
The sliding tariff rates have also attracted several heavy power consumers. The Delhi Metro Rail Corporation (DMRC), which currently pays two to three times the lowest solar tariff, has signed a power purchase agreement with one of the cheapest solar power projects in India. DMRC will source power from the Rewa solar power park located more than 800 kilometers away in an attempt to reduce its procurement cost.
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