The record low bids for solar power projects in the country may not be a threat to the sector after all. According to a report by Institute of Energy Economics and Financial Analysis (IEEFA), these bids are not only commercially viable, they are replicable and sustainable as well.
“This trend is not occurring in a policy vacuum. India’s new draft National Electricity Plan, released in December, calls for a fivefold expansion to 258 Gigawatt of renewable capacity by 2027, an expansion that would reduce thermal power capacity share to 43 per cent of India’s total from 66 per cent today,” the report said.
It added that the solar-auction results mean this target just got substantially easier and more cost effective to implement.
“Costs per unit of power to purchase are tumbling, and—of critical importance—it can now be shown that these prices are not only commercially viable but are likely to be beaten again in 2018, and again in 2019 as total solar costs continue to decline globally at a rate of 10 percent annually,” IEEFA said.
Attributing the lowering delivered cost of solar power in India to a whole host of factors, IEEFA said some of the major driving forces are 30 per cent drop in solar module costs over the past year and rapidly expanding access to global capital among others.Read More…
Credit By : Energy.economictimes.indiatimes.com