The cost of solar and wind power generation in India may become more competitive than coal-fired power in 2025-2030, Moody's Investors Service said in a report.
The levelized cost of electricity (LCOE) for new solar and onshore wind projects (both with battery storage) is expected to be equivalent to that of new coal power plants in India by 2025, if the LCOE of the former declines at a compound annual growth rate (CAGR) of 8-16% from 1H2020 to 2025, according to the report.
Given the CAGR at 4-9%, the LCOE of new solar and onshore wind generation projects will be equivalent to that of new coal power plants by 2030, the report said.
The situation in India and China are broadly similar. The report pointed out that from 1H2018 to 1H of 2020, the LCOE of new solar and onshore wind generation projects with the same battery capacity dropped at a CAGR of 23-40% in China and India.
BloombergNEF analyzed the LCOE of new photovoltaic (non-tracking) and onshore wind power plants (both without battery storage) in India and China has already been close to or lower than new coal-fired power plants in the first half of 2020.
Owing to governments' clean energy policies and initiatives for green recovery, renewable energy will play an increasingly important role in power supply, and coal-fired power plants in countries such as China, India, Japan, South Korea and Indonesia will likely be troubled by demand reductions, said the report.
(Writing by Shengnan Liu Editing by Harry Huo)
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