Solar power at a little more than Rs 1/kwh is now a reality-III: Offshore wind to become cost effective by 2025 in India
It is not just solar but wind energy prices are also plummeting rapidly. Tariffs in India are currently at Rs 2.64/kwh and they are expected to come down further as we go along. 8But the big potential for India lies in offshore wind sites, where wind intensity will be higher while space is not going to be a constraint. 8Cost economics show that offshore wind will emerge as a new cost competitive source of electricity generation for India by 2025. 8Providing grid diversification is a key advantage of offshore wind, as are its absence of land requirements and its proximity to heavily populated coastal cities. 8Global offshore costs continue to fall quickly. In September 2017, the U.K. government awarded three offshore wind projects totaling 3.2 GW with strike prices going as low as £57.50/MWh for projects scheduled for commissioning in 2022/23. 8Meanwhile, even though wind energy prices are in free fall now, there are expectations of a renewed cycle of capacity creation in India from next year. Click on Reports to know how this is going to happen.