According to the report, in Africa, low project development due to political instability, immature support mechanisms and increasing competition from solar has resulted in a 2 per cent downgrade QoQ.
Imposition of auction ceiling prices and delays in commissioning of awarded projects have lowered near-term growth outlook of wind power sector in India, according to a report. In its latest report ‘Global Wind Power Market Outlook Update: Q2 2019’, Wood Mackenzie Power and Renewables said the current market conditions in India have bruised the region’s near-term outlook, resulting in a 4 per cent downgrade quarter-on-quarter (QoQ).
“The government-imposed auction ceiling prices and delays in commissioning awarded projects have slowed near-term growth expectations in India considerably — a decrease of 24 per cent from 2019 to 2022,” it said. India has set an ambitious target of installing 175 GW of renewable energy capacity by the year 2022, which includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power and 5 GW from small hydro-power. However, several recent reports have cautioned that India is unlikely to meet the capacity targets for wind and solar power.
According to the report, in Africa, low project development due to political instability, immature support mechanisms and increasing competition from solar has resulted in a 2 per cent downgrade QoQ. While, onshore and offshore policy deadlines in China underpin a 2.9 GW QoQ boost in the country.
Additionally, reliability concerns in Thailand have led to a 37 per cent downgrade over the 10-year outlook, as the government’s focus has turned to other technologies, the report said. On the other hand, Wood Mackenzie Power and Renewables said that the overall outlook for global wind power has been upgraded by 11 GW from 2019 to 2028.
For the US, the report said, the market has been upgraded by 16 per cent QoQ. New state-level targets in the US and the strengthening of renewable portfolio standard mechanisms across the country are expected to support post-production tax credit demand, Luke Lewandowski, Wood Mackenzie Power & Renewables Director said. In Northern Europe, the forecast has been upgraded by 6 per cent.