India: 5.2 GW New PV Capacity Between Apr-Nov 2020

Renewable Energy Hogged Power Generation Capacity Addition Between April 2020 & November 2020 In India With Solar Power Accounting For 5.2 GW Of New Capacity: CARE Ratings Limited
09:58 PM (Beijing Time) - 13. January 2021
Presentation1

Basis provisional data of CMIE and CEA, CARE Ratings Limited said total power generation capacity addition in India declined between April 2020 and November 2020, however solar comprised the largest share of renewable capacity addition with 5.2 GW during the reporting period. (Source: CARE Ratings Limited)

Key Takeaways

  • India added 9.2 GW of new power generating capacity in the country between April 2020 and November 2020
  • It comprised of 7 GW of renewable energy and 2.2 GW of conventional energy, both reflecting a decline of 38% and 68%, respectively
  • CARE Ratings attributed lower capacity addition to lockdown related disruptions, labor shortages and financial constraints

Renewable energy generation capacity addition in India between April 2020 and November 2020 added up to a total of 7 GW, clearly surpassing conventional capacity additions that was calculated by credit ratings agency CARE Ratings at 2.2 GW, basis provisional data of the Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE) and Central Electricity Authority (CEA).

Out of this 7 GW, solar power claimed 5.2 GW or 75% a share taking the cumulative power generation capacity of this clean energy source to 37 GW. Compared to a year back, India’s renewable energy capacity addition was recorded at 11.4 GW, reflecting a decline of 38% on annual basis, while for conventional energy sources the annual decline was 68% from 7 GW reported for last year.

India’s dominant source of energy currently, coal power accounted for 1.9 GW during the reporting period in 2020, said CARE in its December 2020 Power Sector Update.

“The lower capacity addition can be attributed to the lockdown led disruptions in the supply chain (which slowed movement of inputs and has led to an increase in their prices), labour shortages as well as the constrained finances and liquidity pressures faced by the developers,” said CARE analysts. “In addition, the restriction on the imports of inputs viz. for solar power has aggravated the constraints faced by the developers. Project timelines have been extended as a result, further aggravating the financial stress of developers. A six-month extension has been given by the Ministry of New and Renewable Energy for the completion of the under construction projects.”

Altogether, the total domestic electricity generation capacity of India was 374 MW at the end of November 2020, divided between 284 GW of conventional energy and 90 GW of renewable energy.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani