IEEFA Report on India’s Renewable Energy Policy Headwinds

After the addition of on average 13GW of renewable energy capacity in FY2016/17 and FY2017/18, India’s renewable capacity additions were expected to grow on average at 20-25GW in line with the target of 175GW by December 2022. However, less than 10GW of on-grid renewable capacity and installs were added in FY2018/19. This is expected to grow to 12-13 GW in FY2019/20, which is up year-on-year but still tracking well below target. During the past 12 months, a number of major reforms in the power sector, including amendments to the electricity act, a new power tariff policy, and payment security funds for renewables have been discussed or foreshadowed. IEEFA’s concern is that most of these are yet to be executed: talk is easy, India needs delivery.