Solar now cheaper than Australian coal - India

Looks like coal's going down the gurglar in India. Well at least Australian coal, which is now more expensive than solar power in India. Hear those "market forces" yet Tone? Tone deaf?

Basically, says IEEFA, the required wholesale power price for imported coal is prohibitive relative to domestic coal or renewable energy. 

“Wind, solar and hydro facilities can be built faster and / or at lower PPAs. Additionally, the use of renewable energy incorporates a zero fuel cost, such that there is an inbuilt deflationary driver – i.e. zero indexation. 

“Given the recent drive by the Reserve Bank of India (RBI) to prioritise the sustained reduction in inflation, renewables support a series of GoI / RBI targets. Importing thermal coal achieves none of these goals, and more likely contradicts them.” 

IEEFA analyst Tim Buckley said that, while the imported coal price may come down, lowering the generation price to around 9c/kWh, there was no way developers could bank on prices staying that low, considering the uncertainty surrounding thermal coal. 

“(India’s) proposed new coal generation plan is showing signs of significant financial stress and is likely to deliver far lower than expected levels of new supply over the next five years.” 

This is not great news for Australia, or more particularly Queensland, which is betting on India’s appetite for imported coal to fund the development of the state’s massive Carmichael coal deposit and the related expansion of the nearby Abbot Point coal port. more

Makes sense. Once the solar panels are up and running there's no fuel costs to drive it. You'd be stupid not to go solar.