The surge gives impetus to the government’s hopes of edging closer to its target of generating renewable power capacity of 227 gigawatts (GW) by March 2022New Delhi: Renewable power generation capacity is likely to receive one of its largest annual increases yet in 2019 – with an estimated 15,860 megawatts (MW) of capacity added – a surge of over 50 percent from last year as the government hopes to edge closer to renewable power capacity of 225 gigawatts (GW) by March 2022.
“We expect a total RE capacity addition of 15,860 MW in 2019, a sharp jump of 50% over 2018. More than 69% of capacity addition is expected to come from utility-scale solar projects,” consultancy firm Bridge to India said.
“Solar utility-scale capacity addition is expected to cross 10,000 Mw for the first time to register a new record at 10,902 MW. Rooftop solar is expected to have another year of high growth with estimated capacity addition of 2,368 Mw (+49 per cent) but open access solar activity is expected to fall drastically by 63 percent.”
Vinay Rustagi, managing director of Bridge to India, a renewable energy consultancy, attributed tender activity as one of the key factors for the surge.
“Capacity addition is expected to jump sharply but this is more due to volatility in tender issuance time-table rather than a sustainable surge. Overall, the sector is bound to continue its struggle with GST, safeguard duty, funding availability and transmission connectivity,” Rustagi said.
“Crucially, in an election year, politics is likely to dominate over reforms and swift resolution of sector problems is unlikely. On the plus side, we do not expect any retreat in the push for renewable energy irrespective of who comes to power,” Rustagi said.
PSU Watch is a business news brand of 27 Frames Communications LLP. It places the spotlight on PSUs, Governance, Bureaucracy, Defence and Public Policy as the sector traverses through a period of radical change.