India's RE installations to reach 45 GW in next two years: CareEdge Ratings

New Delhi: Annual renewable energy (RE) installations in FY24 are to be around 20 GW, led by the solar sub-segment, CareEdge Ratings said on Thursday.

This is based on the healthy pipeline of over 55 GW assets under development. The subsequent year is expected to see installations of 25 plus GW, leading to a cumulative increase of 45 GW over the next two fiscal, the rating agency said in a sectoral note.

The solar sub-segment is expected to lead the way in terms of installations, followed by wind and hybrid capacity. The commercial and industrial segment is also expected to contribute significantly to future capacity additions.

These projections are based on the government's commitment to ensuring the bidding of approximately 50 GW of annual capacity for the next five years to facilitate the achievement of the target of 500 GW capacity through non-fossil fuel sources by 2030.

This will require annual RE installations to exceed 40 plus GW.

The trajectory for FY'24 includes 10 GW of wind capacity and 40 GW collectively from solar, hybrid, and storage-based capacity. Additionally, key states like Gujarat, Maharashtra, and Karnataka, among others, are actively conducting state-specific auctions to support further capacity additions.

Meanwhile, the report stated that the Indian government has awarded a PLI (Production Linked Incentive) scheme of over Rs 18,000 crore to encourage private investment in the solar module supply chain.

This is expected to lead to the establishment of a fully integrated module manufacturing capacity of 27.4 GW, a deeply integrated module manufacturing capacity of 16.8 GW, and a partially integrated module manufacturing capacity of 7.4 GW.

This capacity is expected to be commissioned between FY24 and FY27. The commissioning of this domestic capacity is anticipated to result in annual forex savings of approximately Rs 90,000 crore.

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