South African firm Phelan Energy Group Ltd. (PEG) has won a contract to develop a 50 MW solar power plant in Rajasthan, India. PEG’s bid of Rs2.62 per kWh (R0.54) sets a record solar tariff in India, more than 15% lower than a previous Indian record achieved in April 2017.
According to energy experts and current market conditions, the price achieved by PEG is lower than the average rate of power generated by the coal-fuelled projects of India’s largest power generation utility, NTPC Ltd, at Rs3.20 (R0.66) per unit.
This sets a new benchmark in the development of clean, renewable power and falls in line with the Indian Prime Minister, Narendra Modi’s vision of “clean power for all”.
PEG, the developer of the largest solar farm in Southern Africa, with 175 MWp, won the online reverse auction in India where 14 pre-selected international solar companies duelled for over 10 hours.
The result from this bid has proved that solar power is no longer simply an alternative, but is the de facto cheapest form of power available in a coal power-dominated market such as India,” says Paschal Phelan, Chairman of PEG. “This further undermines the viability of other traditional sources of energy such as nuclear.”
“The coal and nuclear industries will fight to hold the old order with non-moving solar cells able to convert sunshine directly into electricity at half the price with minimal environmental impact,” Phelan adds.