The economics of renewable energy (RE) in India has won the fight according to IEEFA (Institute for Energy Economics and Financial Analysis). The cost of renewable energy in India is now 20-30 percent lower than the cost of a new domestic coal-fired power plant, and 50 percent below that of a new import-reliant coal power plant.
Even as electricity demand has collapsed 27 percent this month to-date, the Indian government announced the awarding of a US$2bn 2 gigawatt (GW) solar tender at a near-record low price of Rs 2.55/kWh.
On April 17, NHPC closed an e-reverse auction (E-RA) for the 2,000 MW grid-connected solar PV project to be set up anywhere in India at a tariff of Rs 2.55/2.56 per unit.
Renewables are clearly the low cost, zero inflation, zero-emissions source of new domestic electricity supply for India. They have near-zero carbon impact on our warming planet.
IEEFA expects the deflation of renewable energy costs to continue for the coming decade, accelerating the realization of stranded asset losses for aging and obsolete coal-fired power plants, and other fossil fuel technologies,” the report added.
Reference- IEEFA Report, Economic Times, PSU Watch