The Indian government’s striking policy shift towards renewable energy sources — away from more expensive and polluting fossil fuels — is impacting solar tariffs in UAE, South Africa, Australia and other countries.
Indian solar power tariff hit a new low of Rs 2.62 per unit this week — 12 percent below the previous record just three months ago. Moreover, shifting rapidly towards low-carbon economy is a step towards the 2015 Paris Climate Agreement that aims to cut greenhouse gases from burning fossil fuels.
It was just 16 months ago that the financial markets were questioning the sustainability of Fortum of Finland’s then record low solar tariff of Rs 4.34 per kilowatt-hour (kWh) which was a 25 percent decline on the previous low set in 2015 and now you have this Indian tariff.
