India delivers 24x7 power at ₹6/kWh, cheaper than coal — Study flags AI investment boom

Time of India

2 days ago

New Delhi:
Solar-plus-storage systems
in India can now deliver round-the-clock electricity at under ₹6/kWh, cheaper than coal and insulated from inflation for 25 years, according to a study by the India Energy and Climate Center (IECC) at the University of California, Berkeley. The study highlights how declining storage costs and policy innovations have enabled India to offer fixed-price electricity, potentially reshaping its industrial and data infrastructure sectors.
"Solar+storage in India is now cheaper than industrial electricity tariffs in most states — and these prices would be locked in for decades," said Dr. Nikit Abhyankar, study author and faculty at UC Berkeley. 'This is a game-changer for India's industrial competitiveness.'
According to the report titled Plummeting Solar+Storage Auction Prices in India Unlock Affordable, Inflation-Proof 24/7 Clean Power, battery storage costs in India have fallen by more than 50% in the last 18 months. As a result, the combined cost of solar with storage is now lower than power from new coal-fired plants.
India's competitive edge stems from low capital costs for solar installations — nearly one-third of those in the US — along with declining battery prices that now match those in China. "With battery pack prices now under $60/kWh and total system costs rivaling those in China, India is replicating its solar success in storage," said Dr. Amol Phadke, co-author of the study.
The report states that India's industrial electricity tariffs have averaged nearly ₹8/kWh in 2025, with costs expected to rise. In contrast, solar+storage systems provide fixed-rate electricity for 25 years, offering predictable and lower-cost clean power to industry. Even with added transmission charges, the systems remain cost-effective for industrial users.
"In today's volatile global energy markets, the ability to guarantee fixed-price electricity for 25 years is unprecedented," said Emilia Chojkiewicz, lead author of the report. 'This is exactly what high-performance, power-hungry facilities like AI data centers need.'
The findings are expected to have implications for industries dependent on 24/7 electricity such as green hydrogen, advanced manufacturing, and data centers. The study notes that AI data centers alone are projected to consume 5% of global electricity demand in the next decade.
The modularity and scalability of solar-plus-storage projects — compared to coal plants that require large-scale infrastructure — could help India meet targeted industrial and digital growth, the report added.