Clean energy consultancy Bridge To India has lowered India’s solar and wind power capacity addition estimate over 2020-2024 citing weak economic outlook and further slowdown in power demand.
It said the domestic energy sector has been hit by multiple demand and supply shocks, sharp reduction in power demand, delays in construction activity, and deferred payments across the value chain.
“Consequent to weakening economic outlook and further slowdown in power demand, we have revised our base case solar and wind power capacity addition estimate over 2020-2024 to 35 GW and 12 GW, down from our previous estimate of 43 gigawatts (GW) and 15 GW respectively,” it said.
The consultancy further noted that the sector was already grappling with a series of vexatious issues over the last few years, and the coronavirus pandemic has added to its concerns.
On the impact of COVID-19 on the renewable energy sector, the report said while the short-term impact has been relatively mild following a series of proactive relief measures announced by the government, the outlook over the next few years appears gloomier due to weakening power demand, deteriorating financial condition of discoms and further constraints in debt financing.
“The pandemic has highlighted operational resilience of renewable power. It has also refocused attention of the government on fighting climate change and localising energy supply. Both these priorities play to renewable power’s advantage,” said Vinay Rustagi, Managing Director of Bridge To India.