Archive · 20 Aug 2026
Battery-Backed Renewables Can Beat New Coal Costs in India
Researchers studied whether solar power and batteries could reliably supply electricity in India.
They examined a large government-backed electricity auction.
The winning renewable projects will be paid about Rs 5.25 for each kilowatt-hour for 25 years.
Batteries would store solar electricity made during the day.
That stored power could then be used in the evening, at night, and in the morning.
The study found that renewable power with batteries could cost less than building a new coal plant.
Seven companies offered very similar prices, which made the researchers view the result as a possible market benchmark.
They said this could help India provide cleaner and more predictable electricity to homes and industries.
A University of California, Berkeley study found battery-backed renewables could provide reliable power below the cost of new coal plants in India.
The analysis examined a 1,000-megawatt Solar Energy Corporation of India auction with a fixed tariff of Rs 5.25 per kilowatt-hour for 25 years.
Meeting the auction requirements would require about three gigawatts of solar capacity and 12 gigawatt-hours of battery storage per 1,000 megawatts contracted.
Seven winning developers submitted tariffs between Rs 5.25 and Rs 5.26 per unit, after bids from 16 companies.
Researchers said firm renewable power could support utilities and energy-intensive industries while avoiding future fuel-price increases.
- Who
- Researchers at the University of California, Berkeley analyzed an auction conducted by the Solar Energy Corporation of India; 16 companies submitted bids and seven won capacity.
- What
- The study assessed whether solar power combined with battery storage could provide reliable, round-the-clock electricity at a lower cost than new coal-fired plants.
- When
- The electricity tariff is fixed for 25 years; the study used 10 years of hourly weather data.
- Where
- India, using solar and weather conditions from 10 Indian states, including Rajasthan as a high-quality solar location.
- Why
- To determine whether firm renewable power could meet demanding supply requirements economically and help utilities and industries manage rising electricity demand.
- Auction size
- 1,000 megawatts
- Contract tariff
- Rs 5.25 per kilowatt-hour, fixed in nominal terms for 25 years
- Winning bids
- Seven developers won capacity, with tariffs ranging from Rs 5.25 to Rs 5.26 per unit
- Bidding participation
- 16 companies submitted bids
- Estimated solar capacity
- About three gigawatts per 1,000 megawatts contracted at a high-quality solar location
- Estimated battery storage
- About 12 gigawatt-hours per 1,000 megawatts contracted
- Reliability requirements
- At least 90% of contracted capacity during six purchaser-selected peak hours and at least 70% during other non-solar hours