A Bridge to India survey of 40 Indian and international CEOs shows that the executives believe India to add another 60 GW renewable energy capacity by 2025, most of it from solar which is far off from the government's ambitions of reaching 100 GW of solar and 175 GW of renewables by 2022. (Source: Bridge to India)
- BTI CEO Survey shows the industry sees India adding another 60 GW of renewable energy capacity over the next 5 years
- Utility scale solar will comprise 39 GW of this total, and an addition of 8 GW to come from rooftop solar
- Despite the country’s thrust on encouraging domestic manufacturing for solar cells and modules, CEOs see the country adding only 3.2 GW of module production capacity by 2025
- Tariffs in the domain remain aggressive and are likely to come down further
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The 5th annual India Renewable Power CEO Survey Report of consultancy Bridge to India (BTI) shows 60 big wigs of the industry as quite optimistic about the market growth in the country. It includes 63% Indian CEOs and 37% international players.
Over the next 5 years, that is by 2025, the respondents expect the country to add 60 GW of renewable energy capacity. Utility scale solar is expected to contribute the largest share of 39 GW. Another 10 GW is to come from wind power, 8 GW from rooftop solar and 2.8 GW from floating solar. That would mean the country will fail to meet the government’s 100 GW solar and 175 GW target by a large margin. End of 2019, India had 42 GW of total installed solar power capacity.
“These numbers, far below government aspirations, are largely in line with Bridge to India’s internal estimates,” said BTI analysts and point out that floating solar additions of 2.8 GW and storage of 15 GWh are ‘really disappointing news on the technology front’.
In terms of module manufacturing capacity, the CEOs see the country adding another 3.2 GW over the next 5 years, and 12 GWh of grid scale storage to be added.
Recently, a 2 GW Solar Energy Corporation of India (SECI) PV auction received INR 2.36 per kWh coming up as the country’s lowest winning solar tariff, dropping from the previous record of INR 2.44 per kWh. The CEOs in BTI’s Survey sees the renewable energy auctions market in the country as too aggressive and believe tariffs will continue to drop in the coming years. Solar power is expected to maintain its cost advantage over wind power with a difference of about INR 0.50 ($0.067) per kWh, believe the CEOs.
Despite the growth prospects, the CEOs see several challenges. Most of them continue are the same as before, namely:
- power demand,
- land acquisition,
- transmission connectivity,
- debt financing, and
- discom offtake.
The results of the CEO Survey are available on BTI’s website.