Power generation from solar and wind projects will likely be cost-competitive relative to coal-based power in India in 2025-2030 period, according to Moody’s Investors Service, the global provider of credit rating, research and risk analysis.
The shift would occur if the Levelized Cost of Electricity (LCoE) from solar and wind projects declines annually by a high single digit to mid-teen percentage between the first half of 2020 and 2025-30.
“We expect the LCOE for new solar and onshore wind – both with battery storage – will be similar to the LCOE for new coal power in 2025, if the LCOE for the former declines at a CAGR of 8% – 16% from H1 2020 to 2025, and in 2030, if the LCOE range declines at a CAGR of 4% — 9% from H1 2020 to 2030,” The firm said in a report.
The numbers are broadly similar for India and China. It added that the LCOE for those renewable sources with the same storage battery capacity as generating assets declined at a CAGR of 23% — 40% from H1 2018 to H1 2020 in China and India.