As part of the government’s plan to push solar electricity by paying for it in dollars, power trading company PTC India Ltd may call for bids from solar project developers on behalf of the ministry of new and renewable energy (MNRE).
The radical approach of dollar-denominated tariff expected to be followed by India’s largest power trader may be similar to that of state-owned NTPC Ltd, aimed at providing green power at less than Rs.4.50 a unit.
With firms such as PTC making a purchase guarantee, these projects will become bankable and help solar power reach grid parity. The power sourced will be supplied to the states.
Inviting?dollar-based tariff bids advocated by energy minister Piyush Goyal, along with sharing of hedging risks, is expected to reduce the solar power rate from around Rs.6.7 per unit to around Rs.4.37, with the firms freed from any foreign exchange risk.
Goyal has maintained that the government is exploring various financing models for the renewable energy sector.