India Emerges as APAC’s Lowest Cost Power Producer: Wood Mackenzie Report

India has emerged the least expensive electricity producer from coal, solar and wind sources in the Asia Pacific region. It is the only country in the region where cost of producing solar power is nearly 14% less than cost of electricity generated from coal. Though, in terms of tariffs paid by consumers, India is fourth cheapest after Malaysia, Vietnam and China.

Cost of power generation is maximum in Japan so it its tariff for consumers amongst all Asia Pacific countries.

According to data gathered by global consultant Wood Mackenzie, levelized cost of electricity generation from fossil fuel at around $44.5 per MWh (Rs 3.05 per unit) in India, is the cheapest in the region. It is trailed by China at $48.5 per MWh (Rs 3.33 per unit) and Australia at $50.9 per MWh (Rs 3.49 per unit) among other 12 countries in the region.

Levelized cost of solar power generation in India according to the study, assessed at around $38.2 MWh (Rs 2.62 per unit), is also the lowest. It is trailed by Australia at $52.7 per MWh (Rs 3.62 per unit) and China at $61.2 per MWh (Rs 4.2 per unit).

India’s levelized cost of onshore wind power generation, projected at $48.9 per MWh (Rs 3.36 per unit) is cheapest in the region. It is trailed by Australia at $74.6 per MWh which translates to Rs 5.12 per unit.

Wood Mackenzie research director Alex Whitworth said: “High-quality solar resources, market scale and competition have pushed solar costs down to half the level seen in many other Asia Pacific countries.”