India’s solar tariffs have recently taken a dive leaving plans for further coal generation no longer viable options for the growing economy.
Tim Buckley, Director of the Institute for Energy Economics and Financial Analysis (IEEFA), said: “For the first time, solar is cheaper than coal in India and the implications this has for transforming global energy markets are profound.” Read more…
Climate Action reported, that according to Adani Power Management, around $9 billion worth of existing imported coal power plants – approximately 8.6GW – are potentially no longer viable as a result of the “prohibitively high cost of imported coal relative to the long-term electricity supply contracts signed,” Buckley reported.
Buckley added: “Measures taken by the Indian government to improve energy efficiency coupled with ambitious renewable energy targets and the plummeting cost of solar has had an impact on existing as well as proposed coal-fired power plants, rendering an increasing number as financially unviable.” Read more…
Solar tariffs take the lead
According to recent analysis carried out by Climate Action Tracker (CAT), the positive developments on coal use in India and China are likely to reduce projected global carbon emissions growth by around 2-3 billion tonnes by 2030, Climate Action reported.
According to media, solar tariffs in India have reached an all time low of Rs2.62/kWh ($0.04/kWh), 12% below the previous record low tariff awarded three months previously at Rs2.97/kWh ($0.046/kWh).
Climate Action noted that this record tariff for the 250MW solar tender in Rajasthan at the Bhadla Phase IV solar park was then broken just two days later, with the recent 500MW Indian solar auction coming in at Rs2.44/kWh ($0.04/kWh), 7% below Bhalda Phase.
Buckley said: “The record low solar auction rate of Rs 2.44/kWh is significantly lower than the average rate of Rs 3.20/kWh ($0.049/kWh), which NTPC Ltd, India’s biggest coal power utility, wholesales its electricity for.”
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