India could miss Renewable Energy target by 2022 | Report by Crisil


Faced by many a regulatory challenge, Policy flip-flops, and also a steep fall in tariffs, the country is likely to miss the renewable energy (RE) target of 175 giga Watt (GW), by 2022, by a 42% margin, says a report by Crisil

104 GW

India's projeceted RE capacity for 2022, only 40 GW higher than 64.4 GW capacity in 2019

26%

Percentage of the 64 GW of projects auctioned by the centre and states that have received no or lukewarm bids

31%

Percentage of the 64 GW of projects that are facing delays in allocation after being tendered

34

Ration of auctioned or awarded projects to tendered projects in 2019

CHALLENGES FACED BY SOLAR ENERGY PROJECTS

🔲 Growing incoherence between the policy thrust and actual action by implementation agencies pose big risks to the RE targets

🔲 As of July, discoms in Andhra Pradesh alone owed Rs 2,600 crore to developers, part of which was due to ongoing tariff negotiation dispute and the resultant delays in payments. This could act as a deterrent for most developers

🔲 Rajasthan‘s new draft solar and hybrid policy proposes an additional annual levy of Rs 2.5-5 lakh per MW on all projects that sell power to entities outside the state. This could be highly detrimental for growth of the sector


CHALLENGES FACED BY WIND ENERGY PROJECIS 

🔲 Fall in viability after shift from flxed tariffs to competitive bids

🔲 Rise in capital costs with original equipment manufacturers offering no discounts

PRICE CAP ON TARIFFS

🔲 Solar energy:

Rs 2.65 in june 2019; down from Rs 2.93 in December 2018

🔲 Wind energy:

Rs 2.83 in May 2019: down from Rs 2.93 in April 2018



Post a Comment

0 Comments