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Daily News Analysis

Solar tariff in India unlikely to compete with Gulf

28th August, 2020 Environment

Context: The per unit cost of solar power in India, considered among the cheapest in the world, is unlikely to cost less than what it is in Gulf countries, according to an analysis by an energy think tank. This is primarily due to the lower cost of finance in the countries in the region along with factors such as cheaper land prices.


  • India and other countries will struggle to secure the same low tariffs discovered in the Gulf auctions.
  • The Gulf region has achieved tariffs in the range of U.S. cent 1.35-1.80/kWh, and (outside the Gulf region) Portugal was able to offer a record-low tariff discovery cost of U.S. cent 1.32/kWh
  • India’s tariffs, some of the lowest in the world, are about twice that in the Gulf region or around U.S. cent 3.14-3.25/kWh, the report noted.

Reference: https://www.thehindu.com/news/national/solar-tariff-in-india-unlikely-to-compete-with-gulf-report/article32459845.ece