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Solar power tariffs in India will be lower than ₹2.30 a unit by 2030, according to a report by The Energy and Resources Institute (TERI).
In a paper titled ‘Exploring Electricity Supply-Mix Scenarios to 2030’, TERI said the levelised cost of electricity (LCOE) from ground-mounted solar projects will fall from ₹2.87 a unit in 2018 to ₹2.30 a unit in 2030. Tariffs from onshore wind projects will fall from ₹2.85 a unit in 2018 to ₹2.58 a unit in 2030.
“Renewable energy was found to be the cheapest source of incremental generation, even considering sensitivities around capital and financing costs. A high renewable energy scenario is found to have a deflationary impact on system tariff later in the projection period,” the report said.
TERI also projects a reduction of 3 per cent per year till 2024 from 2018, 2 per cent from 2024 to 2027, and 1 per cent after 2027 in the capital cost of solar photo voltaic technology. “The reduction in the capital cost is considered due to technological improvement and optimised manufacturing processes. For wind, a moderate annual rate of decline in capital costs of 1 per cent per year is considered,” the report said.
The report has been brought out by TERI as part of the first year programme of the Energy Transitions Commission India which TERI has undertaken in collaboration with the Climate Policy Institute and the National Renewable Energy Lab.
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