India could cut electricity costs to $50/MWh by 2050 with a fully wind and solar-based power system, says ETC report

India could achieve clean power system at a cost (including generation, balancing, and grid infrastructure) of around $50/MWh by 2050—significantly below current fossil fuel-driven wholesale prices—by shifting to a fully wind and solar-based electricity system requiring primarily day-night balancing.

July 30, 2025 Uma Gupta

Adani Green's hybrid wind-solar energy plant in Jaisalmer, Rajasthan

Image: AGEL

New modelling by the Energy Transitions Commission (ETC) finds that “Sunbelt” countries—including India, Mexico, and much of Africa—are best positioned to lower power system costs by transitioning to low-cost, solar-led energy systems.

“In the global sunbelt, the collapsing cost of solar PV and batteries makes possible far cheaper and more rapid growth in green electricity supply than seemed feasible ten years ago,” said Adair Turner, Chair of the Energy Transitions Commission.

Further, it is technically possible for wind and solar-dominant systems to be stable and resilient with the right mix of balancing and grid technologies, and that the systems are no more likely to experience blackouts than systems dominated by thermal generation.

According to the ETC, India could achieve clean power system at a cost (including generation, balancing, and grid infrastructure) of around $50/MWh by 2050—significantly below current fossil fuel-driven wholesale prices—by shifting to a fully wind and solar-based electricity system requiring primarily day-night balancing.

The modelling suggests that in such a system, solar would account for approximately 80% of installed capacity with the remainder 20% from wind. By 2050, this setup could generate around 7,300 TWh of electricity annually, comfortably meeting India’s projected demand of 5,500 TWh—more than triple the 2024 consumption of roughly 1,600 TWh.

Due to the heavy reliance on solar, the report estimates that about 40% of electricity supply would need to be time-shifted using short-duration energy storage to match demand—such as powering cooling systems after sunset. “The vast majority of this balancing requirement would occur over short durations (intra-day or day-to-day), with minimal need for seasonal or multi-week balancing,” the report notes.

The study highlights India’s abundant solar potential and rapidly declining battery costs. Furthermore, as a developing economy building much of its grid infrastructure afresh, India can design systems optimized for renewables and modern technologies, avoiding many of the legacy constraints faced by developed economies.

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