India's Electricity Sector Transformation | IEEFA

IEEFA's latest report entails a comprehensive analysis of India’s electricity sector transformation with a focus on the coming decade.  

The report presents a sectoral model out to FY2027 that predicts dramatic market share gain by renewable energy with a sustained deflation in renewable tariffs, premised on 50% reduction already in last two years with a record low solar energy tariff of Rs2.44/kWh (US$38/MWh) in 2017. 

With record low renewable tariffs of US$18 and US$21/MWh set in Mexico and Chile respectively this past week, further Indian cost reductions are set to continue. This translates into likely peak power sector coal usage not more than 10% above the current levels by FY2027, subsequently, import thermal coal demand in India will continue to decline as a result. 

A combination of India’s ambitious energy policy and ongoing solar and wind energy tariff deflation will enable India to catalyse US$200-300Bn of investment in renewable energy infrastructure over the coming decade. Improvements in energy efficiency and reduction in technical and commercial losses will deliver better electricity production per coal tonnage. To conclude, the transformation will ensure India can support its economic growth while keeping GHG emissions in check.