Fortum proves low solar tariffs viable in India

Facebook
Twitter
LinkedIn
Reddit
Email
Fortum has commissioned a 70MW solar PV plant in the Indian state of Rajasthan with what was once a record low tariff. Credit: Fortum Corporation

Finnish firm Fortum has commissioned a 70MW solar PV plant in the Indian state of Rajasthan, which it won last year at what was then a record low tariff of INR4.34/kWh (US$0.067).

Critics had said that even higher tariffs in other states were unworkable, although irradiation and solar park costs do vary in each location.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Prices hovered above this 4.34 rupee level for some time, but they dropped significantly lower in February this year with the likes of Acme Solar hitting a levelized tariff of INR3.29/kWh at the Rewa park in Madhya Pradesh. Jaws dropped in the industry, followed by the usual to and fro between doubters and those convinced that market conditions genuinely make such low tariffs feasible.

Fortum’s plant completion will be welcomed by the Indian government, which despite aiming to push prices down will want to see through a sustainable industry. Nonetheless it is well known that Fortum has a rock solid balance sheet and Bridge to India has cited poor risk pricing in the business plans of Fortum's Indian rivals.

The firm’s 70MW commissioning at the Bhadla Solar Park came on schedule, having secured a 25-year power purchase agreement with major Indian utility NTPC.

Fortum entered India by announcing plans to invest €200-400 million. The Bhadla project is the company’s third and largest solar plant to date, with a total 85MW installed across Rajasthan and Madhya Pradesh. The company is also building a 100MW solar plant at Pavagada in Karnataka, which is due for completion in the next few months, with a tariff of INR 4.79/kWh.

Read Next

September 4, 2025
India’s Goods and Services Tax (GST) Council, the joint forum of the Centre and States, has reduced the GST rate on renewable energy components from 12% to 5%. 
September 4, 2025
Indian solar manufacturer Waaree Energies has acquired a 64% equity stake in power transformer manufacturing company Kotsons.
September 3, 2025
India has added 2.8GW of rooftop solar in H1 2025, a 158% year-on-year surge from just 1.1GW in the same period last year.
September 1, 2025
The US International Trade Commission (ITC) has voted to continue the investigation on imported solar cells from India, Indonesia and Laos.
August 28, 2025
Indian solar manufacturing firm INA Solar has broken ground on its fourth 4.5GW cell production plant in Narmadapuram, Madhya Pradesh.
August 26, 2025
Jakson Engineers is investing over INR80 billion (US$912.5 million) to set up a 6GW integrated solar module, cell, and wafer plant.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines