In the process of glorifying or criticising solar energy sector over falling tariffs, the mainstream media have only provided half-baked information to people. Perhaps that is why news headlines such as DMRC’s Rewa solar power plan runs into trouble mislead us. The winning price in Rewa was Rs.3.30 per unit. Today this news reports that the Rewa solar project is in trouble. The reason is that the Delhi Metro Rail Corporation (DMRC) will have to purchase solar energy at Rs.4.21 instead of Rs.3.30 per unit. This may be true but the decision on final tariff at the time of writing of this article remains pending.
But why a sudden increase in the cost of solar energy of Rewa solar park now?
Actually, there is no increase in the cost of solar energy. It is going to remain the same- Rs.3.30 per unit. It is the additional inter-state transmission charges that increase the DMRC’s tariff to Rs.4.21 per unit-91 paisa up from Rs.3.30. At the time of the signing of the contract, transmission charges were off the clauses of the contract. If the transmission charges are levied, DMRC it will have to pay the additional charge.
Loosely the difference is same as buying a t-shirt from a factory outlet or buying it from a retail shop. The difference is due to the addition of fuel charges/ transportation cost in transferring the t-shirt to the retail shop.
Thus the generation cost of solar energy from Rewa solar park remains unaffected. Any changes will be the result of the addition of the intra-state transmission charges.
Solar energy tariff schedule of Rewa solar park is as shown:
SolarDae is of the view that the government should refrain from adding any charges to the solar energy cost at this point of time.