A new report shows that most markets in the Asia Pacific (APAC) region can expect to see a cheaper levelised cost of electricity (LCOE) for renewables compared to coal by 2030. With India and Australia expected to lead the charge.
The latest report by Wood Mackenzie tails that across the region, new investments in renewables power are expected to be 23 percent lower cost than coal power on average by the end of the decade. Currently, renewables power costs about 16 percent more on average compared to coal power but has been at a discount to gas-fired power since 2019.
Wood Mackenzie senior analyst Rishab Shreshta said “today, India and Australia are the only markets in the Asia Pacific with LCOE for renewables cheaper than new-build coal. However, by the end of the decade, we can expect almost all markets in the region to have renewable power at a discount compared to the lowest-cost fossil fuel. The stage is set for the rapid growth of subsidy-free renewables in the Asia Pacific.”
By 2030, renewables power in India and Australia are expected to be 56 percent and 47 percent cheaper than new-build coal, respectively.