<b>Arunabha Ghosh & Kanika Chawla:</b> Celebrate progress… with caution

India has one of the most dynamic and competitive RE markets in the world

On February 10, bids for what will become one of the world’s largest solar photovoltaic power plants reached historic lows. The lowest bid for the levelised tariff for the 750-megawatt (MW) Rewa Ultra Mega Solar Plant in Madhya Pradesh was Rs 3.30 per kilowatt-hour (kWh), with the first year tariff at Rs 2.97/kWh or 4.4 US cents. In fact, three companies — ACME Solar, Solengeri Power, Mahindra Renewables — bid first year tariffs below Rs 3. Do these tariffs indicate that renewable energy (RE) has finally come into its own in India? Yes and no.

Solar tariffs have been falling in