India heading towards a sustainable future by being the cheapest producer for electricity in the Asia Pacific region

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In the entire Asia-Pacific region, India has been declared as the cheapest producer of electricity from coal, solar and wind resources. India is currently the only country in the region for producing solar power 14% less than the cost of electricity generated from coal. This displays India’s commitment to a sustainable future lowering the consumption of non-renewable energy resources.

However, in terms of paying tariff India ranks 4th cheapest in the region after Malaysia, Vietnam and China. Japan has the highest cost in terms of electricity generation and hence it is all the highest in terms of tariff paid by the consumers. As per the data that is provided by Wood Mackenzie, cost of electricity generation from fossil fuel is around Rs 3.05 per unit in India followed by China which is Rs 3.33 per unit and Australia at Rs 3.49 per unit among 12 other countries in the region.

The levelised cost for solar power generation in India is Rs 2.62 per unit which in fact is even lower than the electricity generation for coal that is then followed by Australia at Rs 3.62 per unit and China at Rs 4.2 per unit. High-quality solar resources, market scale and competition have been influential in reducing solar costs in Asia Pacific countries, as informed by Alex Whitworth research director of Wood Mackenzie. The lower cost of renewable energy is because of India’s unique model for large scale park based development through competitive auctions that help in transferring efficiency gains from IPPs to procuring utilities.

Even though the solar costs are falling down, the levelised cost of energy for wind and solar in the Asia pacific region is still 29 % higher than that of coal and it will disappear by 2027 as forecasted by Wood Mackenzie.2030 will see the renewable power to be 17% cheaper than that of coal fired power across the region.

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