Global renewable ranking: India’s ascent reverses

By: | Published: May 5, 2018 4:03 AM

India came down two spots in a year and is now ranked fourth in the renewable energy country attractive index, trailing China, the US and Germany.

renewable energy, renewable sectorThe country’s renewable energy capacity stands at 69,685 MW at the end of FY18.

India came down two spots in a year and is now ranked fourth in the renewable energy country attractive index, trailing China, the US and Germany.

A report by EY attributed ultra low wind and solar power tariffs discovered in the latest auctions, coupled with uncertainties related to proposed import duties on solar components, as the main reasons behind the renewable energy sector loosing its sheen.
The index had ranked India at third and second position in 2016 and 2017, respectively. The report said, “Disputes between developers and distribution companies are raising investor concerns.”

The lowest solar tariff ever in India was Rs 2.44 per unit, discovered in May 2017 at the reverse auctions for solar plants in Rajasthan’s Bhadla, while the lowest wind tariff currently is `2.43/unit for generating units in Gujarat. The report said the aggressively low bids now seem unsustainable as rising interest rates and the end of quantitative easing are set to raise the cost and reduce the flow of cheap capital.

The country’s renewable energy capacity stands at 69,685 MW at the end of FY18. The target is to achieve 1,75,000 MW by FY22.

As FE recently reported, the threat of safeguard and import duties on solar panels has had a dampening effect on bidders for new projects, with Maharashtra postponing and Gujarat cancelling solar auctions.

Similarly, Karnataka’s invitation for 1,200 MW at the Pavagada Solar Park received tenders for only 550 MW.

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