Cheaper Batteries Make Solar and Wind the Lowest-Cost Power Source in India, Says BNEF
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Solar and wind power have been the cheapest sources of new bulk electricity generation in India since 2018, according to estimates from BloombergNEF (BNEF). The company measures this using a figure called the levelised cost of energy (LCOE), which compares the total cost of building and running a power plant over its life against the amount of electricity it produces.
According to the report, falling prices for batteries are now making renewable energy even more competitive. Batteries can store electricity generated by solar panels during the day and release it later, when people need power in the evening. This ability to supply electricity at different times helps solve one of the main problems of renewable energy, which is that the sun does not shine and the wind does not always blow. As storage becomes cheaper, new solar and wind projects paired with batteries are increasingly able to compete with new coal-fired power stations.
India depends heavily on coal to meet its electricity needs, and the new findings put pressure on the country's plans for future power capacity. If it is cheaper to build solar and wind farms with battery storage than to build new coal plants, utilities and investors may choose renewable projects instead. This change could affect India's efforts to expand clean energy and reduce carbon emissions, while also influencing electricity prices for households and businesses.
The findings suggest that the economics of power generation in India are changing quickly. Experts say that continued declines in battery costs could further strengthen the case for renewable energy in the coming years. However, the report's details focus on cost comparisons, and the real impact will depend on factors such as government policy, grid infrastructure, and the pace at which new projects are built.
Sources: Asian Business Review
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