ETC India in its new report projects the cost of solar power generation to fall to as low as Rs 1.9 per unit over the next decade through 2030 in India with new technologies boosting efficiency levels. The report by published by ETC India with TERI and US-based think tank Climate Policy Initiative (CPI).
“By 2030, we project that the cost of wind and solar will be between Rs 2.3-2.6 per Kilowatt hour (kWh) and Rs 1.9-2.3 per kWh, respectively, while the cost of storage will have fallen by about 70 per cent,” said ETC India in a statement.
The required investments in electricity generation capacities are going to be substantial; at about Rs 1.65-1.75 lakh crore per year said the analysis. This is slightly above the investment rate achieved over the past 10 years, around Rs 1.40-1.50 lakh crore per year. This will represent a substantial financing challenge given the current stresses on the Indian banking system
The study estimate the cost of wind and solar will be between 2.3-2.6 Rs/kWh and 1.9– 2.3 Rs/kWh respectively.Even considering the additional costs required to balance the variability of renewables, the study projects that a grid with 30% variable RE generation is cost-effective as compared to a moderate RE system and does not raise costs for Indian consumers.
Considering other renewables, hydro and nuclear, the share of zero carbon generation can be even higher, at 45%, while the share of coal falls to almost 50% said the report.
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