The central Indian state of Madhya Pradesh has achieved a significant milestone in the country’s transition to clean energy. In a recent auction, the state secured the lowest-ever price for buying solar power backed by battery storage, with two companies, CEIGALL India and ACME Solar, winning the tenders to supply clean power at 2.70 rupees (approximately 3 US cents) and 2.764 rupees per kilowatt-hour (kWh), respectively.
This breakthrough could potentially reshape the way states purchase power, as it demonstrates that renewable energy with storage can be cheaper than coal. According to Manu Srivastava, a top official at the state’s Power and Renewable Energy Department, the project’s innovative approach to energy storage has made it possible to supply power at a lower cost. The project consists of two units, each capable of delivering 220 megawatts of power during sunny hours using solar panels, and drawing power from batteries charged by solar energy in the evenings.
The batteries are also recharged with cheaper night-time electricity from the grid, allowing the units to draw power from them in the mornings before the sun has charged the panels. The state plans to build on this success by developing longer-duration storage projects, with the ultimate goal of offering 24-hour renewable power at rates comparable to coal power. This achievement is particularly significant in the context of India’s ambitious target of expanding its non-fossil fuel capacity to 500 gigawatts (GW) by 2030.
As the country continues to rapidly add to its renewable energy capacity, the role of coal power remains crucial due to the need for stable power during non-solar hours. However, the development of viable and affordable storage projects, such as the one in Madhya Pradesh, could potentially disrupt the dominance of coal power in India’s energy strategy. The success of this project is a positive step towards achieving the country’s renewable energy goals and reducing its reliance on fossil fuels.