India to Add 10000 MW Renewable Energy Capacity in 2020: Icra

The current trend prediction comes on the back of the fact that the share of renewable energy has been steadily rising in India’s energy mix.

Renewable energy capacity addition can be expected to be around 10000 MW in financial year 2019-2020, rating agency Icra has said while maintaining a stable outlook for the renewable energy sector.

The current trend prediction comes on the back of the fact that the share of renewable energy has been steadily rising in India’s energy mix which increased from 5.6% in FY2015 to 7.8% in 2018.

“This rise is owing to the large-sized capacity addition in the wind and solar power segments during this period, driven by policy support from central and state governments as well as the significantly improved tariff competitiveness of wind and solar power vis-a-vis conventional power sources,” Icra said.

Icra group head – corporate ratings Sabyasachi Majumdar said that the tendering process and the awarded projects provide a reasonable healthy outlook for the addition of renewable energy capacity.

“This is expected to increase the share of RE in the all India generation to 10 percent by FY2020 and further to 13 percent by FY2022 based on capacity addition forecasts. We have maintained a year-end stable outlook for the domestic renewable energy sector,” he added.

However, Icra also pointed out that wind and solar segment remain exposed to certain near-term challenges such as the cost impact of safeguard duty couple with the availability of transmission network.

“However, notwithstanding these cost pressures, wind and solar PV (photovoltaic) energy projects are likely to remain cost competitive against conventional power sources,” Icra said.

Source: PTI