U.S.-based SunEdison has won a bid to sell solar power in India at a record low tariff, which could boost the appeal of the renewable source at a time when Prime Minister Narendra Modi is pushing for clean energy to combat climate change.
Solar energy still has a long way to go before it can effectively compete with coal, given questions over consistent supply and transmission. But falling rates could unlock more government support for solar and wind energy.
Modi's government expects clean energy to yield business worth $160 billion in India in the next five years, and established U.S. companies like SunEdison and First Solar Inc are likely to be the biggest beneficiaries.
SunEdison won the auction for a 500 megawatt project in Andhra Pradesh, bidding to supply power at 4.63 rupees ($0.0706) per kilowatt-hour, Upendra Tripathy, new and renewable energy secretary, told Reuters on Wednesday.