The solar power tariff fell to an all-time low of Rs 2.44 per unit during the auction of 500 MW of capacity at Bhadla (III) in Rajasthan. The government had offered viability gap funding (VGF) for the project.
"During 2017, solar power tariff hovered around Rs 2.40 per unit only in auctions for capacities, where viability gap funding component was there," Tiwari said.
Wind power tariff, on the other hand, dropped sharply to Rs 2.43 per unit during an auction conducted by Gujarat Urja Vikas Nigam Ltd (GUVNL) last year.
Tiwari further said with abundant solar and wind potential, southern states like Andhra Pradesh, Telangana, Tamil Nadu and Karnataka, have the opportunity to become exporters of power.
"Earlier, power used to be transported to states like Tamil Nadu and Andhra Pradesh and Telangana. But this situation has now changed. States like Telangana, Karnataka, Tamil Nadu, Andhra Pradesh are blessed with best of solar radiation and wind energy. These states will become exporters of power," he said.
However, he emphasised on the need for enhancing transmission network saying that the economic power can be unleashed for these states if India invests in power transmission.
"Just like India builds highways and roads that unleashes economic potential, much more economic potential may be created by power transmission lines. The country should build more and more power corridors, which would enable states to freely exchange very cheap electricity," Tiwari added.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)