Chapter Summary:
This chapter (sidebar) focuses on the economics of renewables, pointing out that more than just typical power plant variables like construction cost, interest rates, plant load factors (aka capacity utilization factors), etc., economic comparisons must factor in network level costs due to the variability of most renewables. With one set of assumptions, solar power could already be cheaper than imported coal power. With another set of assumptions, it is 2 to 3 times as expensive over the lifetime from a utility procurement perspective.
To see the model used please click here.
[youtube https://www.youtube.com/watch?v=5BfbAbSteTM&w=560&h=315]
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This chapter is a part of Brookings India’s edited book, “Blowing Hard or Shining Bright? Making Renewable Power Sustainable in India” To view the preface and table of contents, click here.
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Rahul Tongia
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The Centre for Social and Economic Progress (CSEP) is an independent, public policy think tank with a mandate to conduct research and analysis on critical issues facing India and the world and help shape policies that advance sustainable growth and development.