India could add 68 GW of new renewable energy capacity in five years, with utility-scale solar occupying 65% (44.2 GW) of the total estimated capacity addition. New rooftop solar addition is expected to be below 11 GW and floating solar below 5 GW for this period, according to Bridge To India’s Renewable Power CEO Survey 2021.
On average, the nation is expected to add 13.6 GW of renewable energy capacity per annum over the next five years. Gujarat is the most preferred state for renewable power projects, followed by Maharashtra and Karnataka.
Top executives from 44 leading Indian and international companies participated in the survey.
The survey finds a highly optimistic market sentiment despite some operational and financial challenges. An overall 86% of respondents are upbeat on the market prospects. The respondents gave positive feedback on most fronts, including government policies, demand for renewable power, and land.
A majority of the respondents believed the government policies such as PLI Scheme, Basic Customs Duty (BCD), Approved List of Models and Manufacturers (ALMM) and 12 GW PSU scheme were effective [in creating a favorable environment for domestic manufacturers]. Notwithstanding these, capacity additions in grid-scale storage and cell and module manufacturing are expected to remain below 15 GWh and 10 GW, respectively, in the next five years.
Concerns around DISCOMs’ crippling financial health, increasing offtake risk, and policy changes persist. ALMM and BCD are also a concern [among developers].
Vinay Rustagi, managing director, Bridge To India, said, “The industry mood is surprisingly upbeat, buoyed perhaps by the huge government targets and strong investor appetite. But views on capacity addition and most policy initiatives as well as operational issues are more mixed. The biggest concern rightly is the terrible financial condition of our DISCOMs.”
The majority of the respondents felt that new policy initiatives for structural reforms like delicensing the power distribution business, privatization of DISCOMs, and Electricity Amendment Bill would be effective for the sector, though execution challenges might thwart progress.
Speaking on the launch of the survey report, Vinay Rustagi, Managing Director, BRIDGE TO INDIA, said, “The industry mood is surprisingly upbeat, buoyed perhaps by the huge government targets and strong investor appetite. But views on capacity addition and most policy initiatives as well as operational issues are more mixed. The biggest concern rightly is the terrible financial condition of our DISCOMs.”
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.