India is the cheapest power producer in Asia-Pacific Region: Wood Mackenzie

New Delhi, August 19: India produces electricity from different sources viz., fossil fuel, wind and solar at the least cost in whole Asia- Pacific region comprising 15 countries as per the data released by global consultant Wood Mackenzie. India also generates solar electricity at 14 pc less cost than that of coal(fossil fuels) electricity. It generates electricity from coal at Rs. 3.05 per unit, solar power at Rs. 2.62 per unit and wind power at Rs. 3.36 per unit.

The director of Wood Mackenzie attributes this positive development to the high quality solar resources, market scale and competition in the region.While Kameswara Rao of PWC India is of the opinion that lower cost has been the outcome of India’s unique model of large scale parkbased development facilitated through competitive auctions. However, the benefit of low cost has not converted into lower tariffs to consumers. India is not first but fourth cheapest nation in Asia-pacific region in terms of tariff charges. Malaysia is the cheapest at Rs. 4.09 per unit, followed by Vietnam at Rs. 5.14 and China at Rs. 5.46 per unit whereas India stands fourth at Rs. 5.83 per unit.

This global consultant estimates that the difference between costs of electricity generation by renewable resources-wind and solar and non renewable resource-coal will disappear by 2027 and by 2030, renewable power will be cheaper than fossil fuel generated power.  Malaysia, Indonesia and Japan will use more renewable power than coal produced power.

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