India has been aggressively pivoting away from coal-fired power plants and towards electricity generated by solar, wind, and hydroelectric power. The rapid diversification of India’s electricity sector is also creating an abundance of jobs. The reasons for this change are complex and interlocking, but one aspect in particular seems to stand out: The price for solar electricity has been in freefall, to levels so low they were once thought impossible. For example, since 2017, one solar energy company has been generating electricity in the Indian state of Rajasthan at the unheard-of, guaranteed wholesale price of 2.44 rupees per kilowatt-hour, or 3 US cents. Consequently, with this massive reduction in the cost of renewables, India is able to shift away from the world’s dirtiest fossil fuel, and to much cleaner sources. While western countries continue to baulk at reducing their reliance on fossil fuels, India is accelerating its plans to lock in a sustained, aggressive reduction in the carbon emissions intensity of its economy.
IEEFA 19th Dec 2019 read more »