According to the Institute for Energy Economics and Financial Analysis (IEEFA), the Indian state of Karnataka has emerged as the domestic leader in installing renewable energy capacity and has even overtaken the neighbouring state of Tamil Nadu. In March 2018, its installed renewable capacity stood at 12.3 GW after it added 5 GW in the fiscal year 2017-2018 alone. By 2028, this capacity could rise up to 23 GW and renewables could account for 60% of the state's capacity and 43% of its power generation.
This increase has been driven by the recent solar energy tenders, which have seen record levels of INR2.82-3.06/kWh (US$41-45/MWh), which is less than the INR3-5/kWh (US$44-73/MWh) for domestic coal-fired power tariffs and INR5-6/kWh (US$73-87/MWh) required for imported coal-fired power generation. In June 2018, the state initiated reverse auctions for onshore wind power plants with a cap price set at INR3.45/kWh (US$50/MWh).
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