List the energy sources available at present and compare the cost of a few typical systems for power generation.
| Energy Source | LCOE (₹/kWh) | Capital Cost | Operating Cost |
|---|---|---|---|
| Coal (Thermal) | ₹3.5-4.5 | ₹6-8 Cr/MW | High (fuel, ash disposal) |
| Natural Gas (CCGT) | ₹4-5 | ₹4-5 Cr/MW | Medium (fuel cost) |
| Nuclear | ₹3-4 | ₹12-15 Cr/MW | Low (fuel + waste) |
| Solar PV (Utility) | ₹2-3 | ₹3.5-4.5 Cr/MW | Very Low (no fuel) |
| Wind (Onshore) | ₹2.5-3.5 | ₹5-6 Cr/MW | Low (maintenance) |
| Hydropower (Large) | ₹2-3 | ₹8-12 Cr/MW | Very Low |
| Biomass | ₹4-6 | ₹4-5 Cr/MW | Medium (feedstock) |
Key Insight: Solar and wind are now the cheapest sources of new electricity in most parts of India. India achieved the world's lowest solar tariff of ₹1.99/kWh in 2020.
| Factor | Fossil Fuels | Renewables |
|---|---|---|
| Fuel Cost | High (60-70% of total) | Zero |
| Capital Cost | Medium | High (but declining) |
| Maintenance | High | Low |
| External Costs (pollution) | Very High | Minimal |
Multiple energy sources are available today, from fossil fuels to various renewable options. Renewable energy, especially solar and wind, has become cost-competitive with or cheaper than fossil fuels due to technological advances and economies of scale. While fossil fuels have lower capital costs, their high fuel and environmental costs make renewables more economical in the long run. India's energy transition toward renewables (target: 500 GW by 2030) is driven by both environmental and economic factors.