By Editors of Power Engineering
Though India had been expected to be the site of a coal boom, plans for new coal construction totaling nearly 14 GW have been cancelled so far this month.
Analyst Tim Buckley of the Institute for Energy Economics and Financial Analysis pegged the coal cancellations on record-low solar tariffs of three cents per KW/hr, The Independent reported. Buckley said as of January last year energy analysts predicted such a low price could never be achieved.
That price is lower than the current wholesale coal power price of four cents per KW/hr.
“For the first time solar is cheaper than coal in India and the implications this has for transforming global energy markets is profound,” Buckley said.
“Measures taken by the Indian Government to improve energy efficiency coupled with ambitious renewable energy targets and the plummeting cost of solar has had an impact on existing as well as proposed coal fired power plants, rendering an increasing number as financially unviable. India’s solar tariffs have literally been free falling in recent months.”
Earlier this month, the Indian government predicted the country’s coal production would double by 2020.