Indian solar power prices hit record low

The Guardian reports that “wholesale solar power prices have reached another record low in India, faster than analysts predicted and further undercutting the price of fossil fuel-generated power in the country.”

“At a reverse auction in Rajasthan in May 2017, power companies Phelan Energy and Avaada Power each offered to charge 2.62 rupees per kilowatt-hour (kWh) of electricity generated from solar panels they hope to build at an energy park in the desert state. Last year’s previous record lowest bid was 4.34 rupees per kWh.

Analysts called the 40 per cent price drop ‘world historic’ and said it was driven by cheaper finance and growing investor confidence in India’s pledge to dramatically increase its renewable energy capacity.

It reduces the market price of solar tariffs well past the average charged by India’s largest thermal coal conglomerate, currently around 3.20 rupees per kWh. Wholesale price bids for wind energy also reached a record low of 3.46 rupees in February.”

“By 2022, India aims to have the capacity to generate 175 gigawatts of power from solar, biomass and wind energy. A draft report by the country’s electricity agency in December predicted that capacity would increase to 275 gigawatts by 2027.”