Return to growth: Given the mismatch between tariffs and risks, few new renewable IPPs being created


Return to growth: Given the mismatch between tariffs and risks, few new renewable IPPs being created

Chhatrasal in a remarked that ‘The renewables sector in India is near-death. Capacity addition has markedly slowed down in this financial year. Few projects are achieving financial closure, and so, few projects are getting complete.’ (bit.ly/34I1JQr, FE, Nov 15, 2017)

The renewable energy (RE) growth momentum lasted into 2018, driven by solar power, but since then the sector has de-grown. While capacity addition in RE was impressive during FY17 (11.3 GW) and FY18 (11.8 GW), there has been a decline in capacity installation (~8.5 GW) during FY19. Performance in rooftop solars has been disappointing—out of a target of 40 GW by 2022, India has been able to achieve 2.1GW. These lower and slowing increments cumulatively call to question the 175 GW target for 2022 (capacity addition was 83GW till September 2019).

India has set ambitious targets for renewable energy capacity. The MNRE has further upscaled the 175GW target of 2022 to 227GW. Moreover, the PM at a recent UN Climate Action Summit suggested an even higher potential uptick to 450GW. Read More

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