With the company committed to cutting down on its AverageUnitCost and marketing, general and administrative expenses, we expect that the EBITDA margin for this division will gradually increase to around 25% by the end of our forecast period.
The solar mission in its first phase focused on areas already connected to the grid and had a pricing system that bundled four units of thermal electricity with one unit of solar-based power, which reduced the average per-unit cost of solar electricity.
However, a spokesperson for Enron told the BBC that the average price of power per unit sold to the state government in the last year came to five Rupees and the cost will come down further once the Dabhol Power Co becomes a fully gas-based plant.