Renewable Energy Profile of India

Renewable Energy Profile of India

Subject: Economy

Context: Amid some continuing challenges for developers, there is cheer on the renewable energy front as the new capacity addition during the first quarter of this fiscal hit a historic high.

Concept:

• During April-June 2021 period, the renewable energy sector added new capacity of 2,522 MW, compared to the April-June 2019 period when it added 2151 MW.
• Solar continues to be the major driver of new capacity as the segment added 2,249 MW during Q1 of this fiscal, while the wind power segment added 240 MW.
• The increase in new capacity addition comes at a time the government is trying to facilitate faster capacity addition as it has set an ambitious target of 175 GW to be achieved by the end of 2022.
• The total grid-connected capacity of renewables stood 96.96 GW. Of this, the solar power segment accounts for 42.33 GW, followed by wind power at 39.49 GW and bio power at 10.34 GW. Small hydro segment accounted for 4.79 GW.
• Gujarat, Maharashtra, Karnataka, Rajasthan and Madhya Pradesh are rated as the top 5 States for the overall growth prospects of renewable power projects. States were ranked on parameters like power demand, land and transmission availability, ease of doing business, policy framework and discom finance

The major concerns

• The inconsistent policies, basic customs duty, unsigned PPAs and poor centre-state coordination, among others.
• The industry mood is surprisingly upbeat, buoyed perhaps by the huge government targets and strong investor appetite.
• The biggest concern rightly is the terrible financial condition of our discoms