India’s renewable power programme, with tariff bids for solar power hitting new lows every few months, is coming up at the cost of thermal power. The idea is to do exactly that and replace the dirty carbon-fuelled coal power generation with green options.

       But the manner in which this is being achieved is unwittingly raising costs for renewable power purchases. Solar tariff at Rs 2.14 a kilowatt hour (kw/hr or unit) was the lowest ever after basic customs duty was imposed on solar equipment from July 1, 2021. It was achieved at a recent Madhya Pradesh government auction; and ...