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Central Indian state secures record-low price for solar-plus-storage power project
Central Indian state secures record-low price for solar-plus-storage power project
NEW DELHI (Reuters) - The central Indian state of Madhya Pradesh has secured India's lowest-ever price for buying solar power backed by battery storage in a clean energy auction, a top state official said, in a deal that could reshape how states buy power.
CEIGALL India and ACME Solar won the tenders to supply clean power to Madhya Pradesh at 2.70 rupees (about 3 U.S. cents) per kWh and 2.764 rupees per kWh, respectively, the official said on Saturday.
The lower price at which solar power can be supplied using battery storage could set a precedent for other states, showing them that renewable energy with storage can be cheaper than coal, said Manu Srivastava, a top official at the state's Power and Renewable Energy Department.
The project has two units, each delivering 220 megawatts of power during sunny hours using solar panels, and in the evenings drawing power from batteries charged by solar energy.
In the mornings, before the sun has charged the panels, the units draw power from those same batteries, which have been recharged with cheaper night-time electricity from the grid.
The state is planning longer-duration storage projects and aims to eventually offer 24-hour renewable power at rates comparable to coal power, Srivastava said.
The lower prices come as India is rapidly adding to its renewable energy capacity, aiming to expand its non-fossil fuel capacity to 500 GW by 2030.
Coal power, however, remains central to the country's energy strategy because of the need for stable power during non-solar hours and the absence of viable, affordable storage projects.
($1 = 88.0950 Indian rupees)
(Reporting by Sethuraman NR; Editing by Tom Hogue)
Source: LiveMint
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