The ministry of new and renewable energy (MNRE) had approved the National Wind-Solar Hybrid policy in May 2018 with an objective to reduce variability in generation and to improve the utilization of common sources like land and evacuation infrastructure.
As per ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited), apart from the reduced variability in generation for wind-solar hybrid projects compared to standalone wind or solar projects due to the complimentary nature of generation, the hybrid projects would lead to savings in capital cost in view of the improved utilization of common infrastructure such as land, approach roads and evacuation infrastructure.
This hybridisation of the wind and solar assets would lower the capital cost by 5-7 per cent compared to the cost of standalone wind and solar assets, thus improving the returns for the developers.
At a tariff rate of Rs 2.5 per unit and with a wind solar mix of 50:50, the internal rate of return (IRR) for a wind-solar hybrid project is estimated to be higher by about 60-70 bps (basis point) against a standalone wind or solar power project, provided other things like funding structure, cost of debt, power purchase agreement terms and operation and maintenance cost remains same.
Reference- ET, ICRA website