Falling solar costs leave gas in the balance in India

Gas could play a role as a balancing fuel in India as the cost of solar continues to fall, but technological progress could make it unnecessary
By Garima Chitkara 1 March 2017
Solar panels in India. The cost of the technology is falling rapidly. (PA)

The rapidly falling cost of solar power in India could trigger an increase in the use of gas as a balancing fuel, but lukewarm government support for gas and the development of other grid-balancing technologies are likely to spoil the party.

India’s largest solar project, a 750 MW facility in Rewa in the state of Madhya Pradesh, attracted bids of INR 2.97/kWh ($0.044/kWh) in mid-February – a record low tariff for a renewable power project in India.

The tariff makes the project 24% cheaper than a previous...

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