Existing power ecosystem players in India needs to re-align their growth strategy to adjust for low cost solar power
The global energy landscape is undergoing significant changes due to various technological disruptions The early signs of this impact are already evident in India. Recent bidding(s) saw the solar power tariffs breach the INR 2.50 per kWh mark. This is a significant milestone as the solar power tariffs are now comparable to the variable costs of coal-based power in many cases (not considering the fixed costs of coal-based capacities which are sunk costs or which are needed for capacity support). Technological improvements resulting in the proliferation of low cost solar power is expected to have a far reaching and disruptive impact on the power sector value chain including coal mining, production, thermal power plant construction and the railways. This paper makes an assessment of the impact of rising solar power on the incumbent eco-system (mining companies, logistic ecosystem - Indian Railways, ports and shipping companies, capital equipment providers, and Engineering procurement and construction (EPC) companies).
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