Indian Solar price may be 10% below coal power rates by 2020: report

Solar Power will be a significant energy source  &  prices could be 10% lower than coal power prices by 2020 and help revitalize India’s energy sector, said a report released  by consulting firm KPMG.

With India making ambitious moves,   the market penetration of   Solar Power expected to be  5.7% (54 Giga Watt-GW) by 2020 and 12.5% (166 GW) by 2025.  The  report  predicted  with increase in solar generation  the price   could fall  to  INR 4.2 per kWh (kilowatt-hour) by 2020 and as low as INR 3.59 per kWh by 2025  which will be much lower than  coal power.

 

Solar power price declines have beaten the expectations  since the beginning of 2015. In the ongoing NTPC solar park tender, solar prices have breached the Rs.5 kilowatt-hour mark and this is a landmark for the energy sector.

Along with wind power, renewable energy could constitute a significant 20% of India’s lower power mix in energy terms by 2025.