The government is planning to ramp up the country’s green energy capacity base to 175 GW by 2022 from the current 72 GW
India’s renewable energy
generation capacity is expected to reach 140 Gigawatt (GW) by 2022-23 and solar power would
account for around a half of this followed by wind energy with 40 per cent,
research and ratings agency CRISIL said
in a report.
The government is planning to ramp up the country’s green energy capacity base
to 175 GW by 2022 from the current 72 GW.
“Continued government thrust, expected drop in levelised cost of energy, and
economical tariffs compared with conventional sources are expected to benefit
the renewable
energy juggernaut,” the report said.
It added that government’s global commitment to reduce carbon emissions and
availability of foreign funding at attractive rates would also support the
growth of the renewable energy sector.
According to CRISIL, the installed capacity of renewable energy sector has
witnessed a Compound Annual Growth Rate (CAGR) of 18.5 per cent between 2013-14
and 2017-18.
“Major traction was observed in solar power, whose installed capacity grew at a
breakneck speed to 22 GW in financial year 2017-18 – over eight times compared
with financial year 2013-14,” the ratings agency said.
This was driven by cost-competitiveness achieved due to falling module prices,
centralised procurement from credit-worthy central government entities such as
Solar Energy Corporation of India and NTPC Vidyut
Vyapar Nigam, and availability of finance at lower costs, it said.
Wind power grew at a steady pace in the past five years, though it witnessed a
slowdown in financial year 2017-18. “This was mainly due to uncertainty among
developers, delayed approvals, and renegotiations from discoms as the sector
migrated to a competitive bidding mechanism for award of capacities from the
erstwhile feed-in-tariff regime,” the report said.
Private sector investment in infrastructure was estimated to be Rs 20 lakh
crore between 2007-08 and 2016-17, nearly a third of all infrastructure
spending during the period.
However, infrastructure spending declined from 7 per cent of Gross Domestic
Product (GDP)
in the five-year period between 2007-08 and 2011-12 to about 5.8 per cent in
the next five fiscal years ended in March 2017. This could fall more if private
investments are not spurred, the agency said.
“Infrastructure investments have a positive impact on economic growth,
productivity and competitiveness but, accelerating India’s infrastructure
investment to 6 per cent of GDP over a medium-to-long-term has become vital.
While increases in public spending remain necessary, they won’t suffice,” the
report said.
Renewables accounted for a 9 per cent share in the private infrastructure
investment mix between 2007-08 and 2016-17, according to CRISIL.
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