Uncompetitive: coal’s cost disadvantage grows as renewable tariffs plummet
New analysis of India’s coal power tariff data shows that replacing the most expensive coal power plants with electricity generated by solar photovoltaic’s (PV) and wind can save discoms and consumers up to 54,000 crores ($8.3 billion) annually. Focussing only on replacing older (>20 yrs), expensive plants can still yield 20,000 crore ($3 billion) in reduced power purchase costs annually. This analysis, undertaken by Greenpeace India, compared 2015-2016 tariff data published by the Central Electricity Authority against an assumed renewable energy tariff of Rs 3/kWh. New tariff bids for solar PV and onshore wind have dropped well below Rs 3/kWh, with solar PV reaching a record low of 2.44 and wind reaching a record low of 2.64.