India’s renewable energy sector loses speed
The capacity created in India’s renewable energy sector may be impressive, but the pace has begun to slacken. Solar capacity installations in the country is at 25,000 megawatts (MW), or one-fourth of the 2022 target of 100,000 MW, according to Mercom India research. As of July, Indian Wind Turbine Manufacturers Association pegged operating wind capacity at 34,393 MW, or about 57% of the 60,000 MW target set by the government for the five-year period.
Though the original target was to achieve 20,000 MW in solar installations by 2022, the current dispensation’s thrust on renewable energy had accelerated capacity additions. However, midway through, chinks have surfaced to take the wind out of the programme’s sails.
The wind energy sector was expected to return to growth this year, but is increasingly looking unlikely.
As a result, renewable energy industry research provider Wood Mackenzie, formerly Make Consulting, has downgraded its capacity addition outlook for India.
Solar power is no different. Mercom India research forecast a decline in solar installations in the second half of 2018, compared to the first half, due to lack of a strong project pipeline. Installations for 2019 were also projected to be flat compared to 2018.
“Due to the uncertainty around the safeguard duty, auction activity in the first half of 2018 was weak, which means the large-scale project pipeline for 2019 again will be weak,” Mercom India research added.