Indian solar energy can now undercut fossil fuels
Huge drops in the cost of solar energy in India mean renewable energy can now undercut fossil fuels – and it has massive implications for the global energy market.
The 40% drop in the price of Indian solar power has led to the decision by Coal India to close down 37 mines, which follows the scrapping of plans for a number of coal power stations, almost equivalent to the UK’s total power output.
The impact will be felt globally: according to analysts, 57% of India’s energy will come from renewables by 2027, meaning one of the largest emerging markets will have had a great upheaval, which could mean other markets are soon to follow.
This assertion is supported by the announcement by health groups in Australia that coal power must be phased out, due to the risks posed to health and wellbeing.
The general shift of public opinion could be offset by the attitudes some countries are taking to sustainability (i.e. the USA’s stance on the Paris climate agreement). Such a powerful economies position could lead to others following this stance, so could throw the growth of renewables into doubt.
Therefore, the current uncertainty surrounding the renewables markets could continue for a long while yet.
Northern Gas and Power officially opened its India office in April 2017. NGP Websmart will focus on developing the most advanced software and hardware solutions with a vision to lead today’s energy market.