STOCK MARKET BSE NSE

Renewable energy cost in India lowest in APAC region: Report

India's levelised cost of electricity (LCOE) using solar photovoltaic has fallen to USD 38 per megawatt hour (MWh) this year, 14 per cent cheaper than coal-fired power. 

Published: 29th July 2019 03:26 PM  |   Last Updated: 29th July 2019 03:26 PM   |  A+A-

Power-generating windmill turbines. (File | Reuters)

By PTI

NEW DELHI: India has emerged as the market leader with the lowest renewable energy cost in Asia Pacific, according to a report by research and consultancy firm Wood Mackenzie.

According to the report, India's levelised cost of electricity (LCOE) using solar photovoltaic has fallen to USD 38 per megawatt hour (MWh) this year, 14 per cent cheaper than coal-fired power.

LCOE represents the average revenue per unit of electricity generated that would be required to recover the costs of building and operating a generating plant during an assumed financial life and duty cycle.

Wood Mackenzie research director Alex Whitworth said India is the second-largest power market in Asia Pacific with installed power capacity of 421 gigawatts (GW) and solar capacity in the country is expected to reach 38 GW this year.

High-quality solar resources, market scale and competition have pushed solar costs down to half the level seen in many other Asia Pacific countries, he added.

The report further said Australia will see solar costs – which are already competitive against gas power - breaking through the coal-fired power price barrier.

"Solar LCOE has fallen 42 per cent in the past three years and will reach USD 48/MWh in 2020, beating out all fossil fuel competitors," it said.

The report said while solar costs are falling across the region, the average LCOE for wind and solar in Asia Pacific is still 29 per cent higher than coal-fired power.

By 2030, the report said, renewable power will have a discount to coal-fired power of around 17 per cent on average across the region.

Malaysia, Indonesia and Japan will be the only countries with higher renewable LCOE compared to coal.

"We are living through a revolution in the costs of renewable power technology. Lower costs will boost wind and solar generation's share of the power mix from the current 6 per cent to a much higher level in coming years. This will create both opportunities and disruption in the industry," Whitworth said.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp