Solar penetration in India is highly cost sensitive, says a recent working paper released by the National Institute of Transforming India (NITI) Aayog.
The study is based on India’s energy and emissions outlook. By analyzing alternative renewable energy technology cost developments in the future, it was found that a decrease in solar cost by 50 percent can increase solar penetration by more than eight times as compared to the baseline scenario.
This shows that penetration of renewable energy is highly cost elastic in the Indian market and therefore continued policy support to promote renewable energy is essential to achieve the target.
The paper utilizes a bottom- up energy systems model and presents a modeling-based approach to understand the future development of India’s energy system and look at how India’s commitments on climate change will affect its future energy and emissions scenarios. Read More