Climate Changed

Cheaper Solar in India Prompts Rethink for Coal Projects

  • Power from solar panels now half the cost of a new coal plant
  • Shift in electricity economics helps Modi’s goal on pollution
Photographer: Prashanth Vishwanathan/Bloomberg
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India’s coal-power plant developers are growing more pessimistic about their projects after a plunge in the cost of electricity from solar panels improved the economics of renewable energy.

After a string of federal auctions, solar is suddenly the cheapest source of electricity in India. That’s darkening the outlook for the coal-fired power industry as projects struggle to find customers or face cancellation amid a glut of capacity.