Sun to shine on solar, wind power may lag: ICRA

Solar capacity addition, at 7-7.5 megawatt (mw), is likely to exceed wind’s this fiscal even as experts have flagged risks such as not enough buyers and debt leverage in the renewables sector.

Credit rating agency Icra said on Tuesday that the share of the wind and solar capacity is estimated to be 35% and 55% respectively, out of the total 65 gigawatt (gw) capacity addition estimated during fiscals 2018 to 2022.

Sabyasachi Majumdar, senior vice-president and group head, Icra, said, “Even under a conservative assumption of overall renewable purchase obligation at 15% (comprising 10% non-solar and 5% solar) by fiscal 2022 on an all-India basis, the incremental cumulative renewable energy requirement for the period fiscals 2018 to 2022 is estimated at 65 gw, which is quite significant.”

Icra’s study – Indian Renewable Energy Sector – said, “In case of solar energy, the actual capacity addition in fiscal 2017 has remained lower than the target set by the government of India and the same has been due to the delays in tendering and the project award process seen in the states as well as execution delays to some extent. Nonetheless, the solar capacity addition increased by 83% in fiscal 2017 as compared to capacity addition seen in fiscal 2016. This has allowed the share of solar power capacity in the renewable energy mix to increase to 21.5% as on March 31, 2017, from 15.8% as on March 31, 2016. The wind-based capacity continues to occupy a dominant share in the renewable energy mix at 56.4% as on March 2017.”

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