HomePolicies & Regulations ›Solar power cost will reduce to Rs 1.9 per unit in India by 2030, says TERI Study

Solar power cost will reduce to Rs 1.9 per unit in India by 2030, says TERI Study

The study estimate that by 2030 solar electricity could be as cheap as Rs 2.30/kWh and even cheaper solar costs are possible, in the order of Rs 1.90/kWh, if the widespread deployment of tracking technology raises the capacity utilisation factor of new plants above current levels

February 13, 2019. By News Bureau

The Energy and Resources Institute (TERI) has announced that in collaboration with US-based think tank Climate Policy Initiative (CPI) has disclosed the cost of generation of solar power is set to plummet to as low as Rs 1.9 per unit over the next decade through 2030 in India with new technologies boosting efficiency levels. By 2030, we project that the cost of wind and solar will be between Rs 2.3-2.6 per Kilowatt hour (kWh) and Rs 1.9-2.3 per kWh, respectively, while the cost of storage will have fallen by about 70 percent,” the report believed.

As per the analysis, the requisite investments in electricity generation capacities are going to be considerable, at about Rs 1.65-1.75 lakh crore per year. This is slightly above the investment rate achieved over the past 10 years, around Rs 1.40-1.50 lakh crore per year. This will represent a substantial financing challenge given the current stresses on the Indian banking system.

The study estimate that by 2030 solar electricity could be as cheap as Rs 2.30/kWh and even cheaper solar costs are possible, in the order of Rs 1.90/kWh, if the widespread deployment of tracking technology raises the capacity utilisation factor of new plants above current levels.

Likewise, for wind, with pole heights increasing from the current level of 80 meters to 100 and even 120 meters, the baseline projection for 2030 for the levelised costs of wind at Rs 2.58 per kWh could be as low as Rs 2.26 for projects with higher capacity utilisation factors.

The report titled “Accelerating India’s transition to Renewables: Results from the ETC India Project” also states that in the high renewables scenario by 2030 the share of variable renewables including wind and solar will reach 30 percent of total generation by 2030, and 390 GW of capacity. The capacity could reach 420 Gw if small hydro and biomass-based projects are also considered.

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