Solar power could be up to 10% cheaper than coal-based power by 2020, consultancy firm KPMG has said in a report.
“Today, in India, solar prices are within 15% of the coal power prices on a levelised basis. While this may not fully capture costs such as grid integration costs for solar, our analysis suggests that even after considering the same, solar prices would be competitive with coal,” KPMG said in the report released on Monday. “Our forecast is that by 2020, solar power prices could be up to 10% lower than coal power prices.”
Solar power tariff in India touched a record low early this month with US-based SunEdison’s winning bid of Rs 4.63 per unit for a contract to sell 500 mw of solar energy to state-run NTPC Ltd. The tariff is about 15% less than the industry average and 8% below the previous low of Rs 5.05 per unit quoted by Canada’s SkyPower for a tender in Madhya Pradesh.
