India’s wind, solar, hybrid projects expected to grow to 9,500 MW by 2025: Report

India’s wind, solar, hybrid (WSH) project capacity is poised to grow from 310 megawatts (MW) at present to about 9,500 MW by 2025, according to a recent report by Bridge to India.

In recent years WSH projects have garnered significant interest due to the growing demand for firm green power from both DISCOMs and corporate consumers. WSH projects also promise a greater transmission efficiency and lower effective cost in comparison to their standalone counterparts.

The report reviews the WSH market development in terms of government policies, tender and auction history, competitive landscape, design, and execution issues besides growth drivers and challenges.

According to another recent survey by Bridge to India: India Renewable Power CEO survey, in which 44 Indian and international companies participated, India is expected to add 68 gigawatt (GW) of renewable capacity in five years, up marginally from the previous year’s estimate of 60 GW, with solar occupying 65 percent of the share.

Gujarat, Maharashtra, and Karnataka have emerged as the top three states for overall growth prospects of renewable power projects in the survey.

The survey finds that grid-scale storage and module manufacturing prospects were rated as lukewarm with expected capacity addition of only 10 GW and 7 GW, respectively, in the next five years.

“The industry is very optimistic about the sector prospects although concerns around discoms’ crippling financial health, increasing offtake risk and policy changes persist. The industry feels that project auctions were irrationally aggressive,” it said.

The survey noted that almost all demand and supply-related factors including transmission infrastructure, debt financing, and import duties were rated as challenging or extremely challenging.

“The industry mood is surprisingly upbeat, buoyed perhaps by the huge government targets and strong investor appetite. But, views on capacity addition and most policy initiatives as well as operational issues are more mixed,” said Vinay Rustagi, managing director, Bridge to India.

As per the survey, the majority of respondents feel that new policy initiatives for structural reforms like delicensing the power distribution business, privatisation of discoms and Electricity Amendment Bill would be effective for the sector though the execution challenges might thwart progress.

Leave a Reply

Your email address will not be published.