Indian solar power prices hit record low, undercutting fossil fuels
Plummeting wholesale prices put the country on track to meet renewable energy targets set out in the Paris agreement
At a reverse auction in Rajasthan on Tuesday, power companies Phelan Energyand Avaada Power each offered to charge 2.62 rupees per kilowatt-hour (kWh) of electricity generated from solar panels they hope to build at an energy park in the desert state. Last year’s previous record lowest bid was 4.34 rupees per kWh .
Analysts called the 40% price drop “world historic” and said it was driven by cheaper finance and growing investor confidence in India’s pledge to dramatically increase its renewable energy capacity.