Wind Energy Proving Cheaper Than Coal

VIEW IMAGE: In Parts of India, Wind Energy Proving Cheaper Than Coal

Estimates from Bloomberg New Energy Finance show the most efficient wind projects in India run at a similar cost to new coal-fed plants. The best projects have a levelized cost of energy, which allows for comparison between different fuel sources, of 2.7 rupees (5 cents) to 4.4 rupees a kilowatt-hour, compared with coal’s 1.9 to 4.8 rupees, Ashish Sethia, an analyst at London-based BNEF, said in a July 3 note.

The economics of Indian wind developments may lure investors away from markets such as the U.S., where the end of a tax break for wind-power utilities could cause a 75 percent slump in new installations next year, according to BTM Consult, a unit of Navigant Consulting Inc. Kolli said India’s decision to suspend a wind subsidy in April won’t affect investments.

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