Storage-linked Solar Power to Reach 5 kWh by 2022

Renewable Energy like solar power is available for half the cost, and can reach 5 kWh by 2022.

Renewable Energy like solar power with storage is already available at half the cost, compared with power from diesel-run generators, according to industry watchers.

Vikram Kailas, Managing Director and CEO, Mytrah Energy, told BusinessLine: “We are probably going to hit the 5 kWh rate for solar power with storage in another five years.”

Sustained power

According to industry watchers, the biggest constraint to solar-and wind-powered projects is their inability to provide sustained power throughout the day. Even though solar power tariffs have crashed to INR 4-6/kWh (from INR 16/kWh and above) in the past two years, the current technology of battery-linked storage pushes costs to INR 12-14/kWh for those seeking 24-hour solar power.

Explaining the rationale for the lowered tariffs, Kailas noted that the cost of storage-linked solar power is already near Rs 8-10/kWh for housing societies in Gurgaon and Hyderabad. The industry is estimating a 3 per cent y-o-y decrease in costs for parts, and another 3 per cent y-o-y increase in efficiency. By those numbers, the industry estimates a 4-6 per cent y-o-y reduction in costs for both wind and solar.

The falling solar-panel costs have also been a factor in the lowering of tariffs. Commenting on projections that panel costs will continue to fall at the rate of 10 per cent per annum, Kailas said: “The solar-panel cost comprises 60 per cent of the overall project cost. So a 10 per cent reduction in the panel cost translates to a 6 per cent reduction in the project cost, and consequently, another 4-5 per cent reduction in tariffs.”

The government has also called for a tariff-based competitive bid for wind-power projects this year. Commenting on tariffs projections for the same, Kailas said: “We expect turbine costs also to come down. The turbine cost comprises nearly 80 per cent of the entire project cost. Even a 10 per cent reduction there will result in power tariffs coming down by 7 to 8 per cent. We expect the winning bids to remain Rs. 4.20-4.50/kWh in this round.”

Source: Hindu