India abandons coal projects in wake of record solar prices

Electricity from solar farms continues to outbid coal power in India, and this means that several coal power projects in the country are no longer economically viable. One analyst thinks the trend will have profound consequences for international energy markets.

Photo: Mainstream Renewable Power

After several years of drastically declining prices on solar power, plans to construct a series of new coal power plants in India have been canceled. The country, which is the world's second-largest coal consumer after China, is now abandoning coal projects with combined capacity of 13.7 GW, writes energy analyst at IEEFA, Tim Buckley.

During a May auction, the developers Phelan Energy Group and Avaada Power Private Limited bid below the former record-minimum on a solar panel farm in the country by 12 percent. The 250 MW Bhadla project will thus settle for a guaranteed price of DKK 0.29/kWh (EUR 0.039). Just two days later, this record was beat in the auction for two projects of a total 500 MW at prices of DKK 0.23 and DKK 0.24 per kWh.

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