India’s solar prices set to drop amid competition, lower costs
- The price paid for solar power in India at auction is set to fall below last year’s record lows for the South Asia nation, driven by plummeting panel prices, falling interest rates and competition among developers seeking a slice of the country’s renewables market.
- Prices could dip lower than Rs.4.34 a kilowatt-hour offered in auctions held in Rajasthan a year ago.
- In 2016, countries from Chile to the United Arab Emirates broke records with deals to generate electricity from sunshine for less than 3 cents a kilowatt-hour, half the average global cost of coal power.
- With China and Japan joining competitive-bidding bandwagon, as much as 25 GW of solar capacity could be awarded through auctions this year globally.
- India adopted auctions in 2010 and is now racing to achieve Prime Minister Narendra Modi’s solar target of 100 gigawatts of capacity by 2022, a goal that’s second only to China.