Page 6 - AsiaElec Week 40 2021

AsiaElec COMMENTARY AsiaElec

Renewables could halve

India’s generating costs

INDIA INDIA stands to gain the most from a rapid roll- 2040.
out of renewables if current green technology is The report found that increasing renewable
harnessed to reach net zero, a recent report from energy from 25% today to 100% in India before
Wärtsilä has forecast. 2050 cuts the cost of electricity in the country by
Renewable energy has the potential to reduce 48%, from $88 per MWh in 2020 to $46 in 2050.
electricity production costs by up to 50% if the A flexible 100% renewable system provides
roll-out of green technology is speeded up, with large levels of excess power that can address
wind and solar set to replace coal in major econ- India’s rising energy dependency, forecast to
omies worldwide. double by 2030.
Wärtsilä said in a its “Front-Loading Net Moreover, when it signed the Paris Agree-
Zero” report that a 50% cut by 2050 would only ment in 2015, India committed to reduce its
be possible if countries adopt 100% renewable greenhouse gas (GHG) emissions intensity by
systems faster than currently planned. 33-35% (below 2005 levels) and to produce 40%
Net zero is feasible in every region of the of its electricity from non-fossil sources by 2030.
world, the report concluded, because all the However, these forecasts for India contrast
technologies needed already exist. with its recent poor performance in terms of
The report said that faster adoption of green emissions.
technology, mainly wind and solar PV, needed Carbon emissions from the power sector
to be combined with technology such as energy have nudged upwards by 255mn tonnes of CO2
storage to balance their inherent intermittency. since 2015. The increased share of coal in the
In Asia, India can halve its electricity costs by electricity mix, adding 38 GW since 2015, is the
2050 if renewables replaces coal, which accounts crucial reason behind the relative rise in emis-
for 70% of electricity at present, and gas as base- sions, the report noted.
load fuels, thereby significantly reducing the The report also said that expanding renew-
overall levelised cost of electricity (LCOE). able energy could also generate major new rev-
Coal-fired power could be securely replaced enues from hydrogen production, creating a
by renewables and flexibility from energy storage technology market worth $39.8bn.
and thermal balancing power plants as early as India’s future is crucial way beyond its

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