India’s renewable power with batteries emerges as cheaper alternative to coal

WASHINGTON: A new University of California, Berkeley study has found that renewable energy combined with battery storage can provide India with reliable, round-the-clock electricity at a lower cost than new coal-fired power plants.

The study examined a 1,000-MW auction conducted by the Solar Energy Corporation of India (SECI), which resulted in a tariff of Rs 5.25 per kWh, fixed for 25 years. Researchers said the auction demonstrated that renewable energy with storage can provide coal-like reliability without exposure to future fuel-price increases.

Using 10 years of hourly weather data from 10 Indian states, the researchers estimated that a least-cost project supplying 1,000 MW would require about 3 GW of solar capacity and 12 GWh of battery storage in a high-quality solar location such as Rajasthan. Other states could require 15–20% more solar capacity, while storage needs would remain similar.

The study attributed India’s suitability for solar-plus-storage partly to its relatively stable solar resources throughout the year. Batteries can shift surplus daytime solar generation to evening and night-time demand.

The auction attracted 16 companies, with seven developers winning capacity at tariffs between Rs 5.25 and Rs 5.26 per unit. Researchers said the closely grouped bids indicate that Rs 5.25 could become a market benchmark for firm renewable power.

The study said the model could help utilities meet rising electricity demand and provide reliable, competitively priced power to industries such as data centres, steel and aluminium. It could also offer lessons to other countries considering new coal or gas capacity. (IANS)

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