Fitch Solutions Macro Research has said in a report that India is probable to install 54.7 GW of wind capacity by 2022 against the government target of 60-GW. The country has a determined target of setting up 175 GW renewable energy capacities by 2022. The small hydro power includes 100 GW of solar, 60 GW of air, 10 GW of Bio-power and 5 GW.
“We remain thoughtful on India meeting its determined 2022 targets for wind power capacity growth, as land acquisition issues and grid bottlenecks will lead to delays to project application in the sector. We forecast India to install 54.7 GW of wind capacity by 2022, likened to the 60 GW government target,” said Fitch Solutions Macro Research.
“The mixture of several challenges in the country’s wind power sector will hit near-term growth momentum, including land availability sprints, grid access bottlenecks and anxieties over the feasibility of low tender bids. This informs our view that India only will add on average 4.5 GW of wind capacity yearly between 2019 and 2022, with the aforesaid risks highlighting further downside risk,” the report said.
“In addition, should the facility not be able to sell electricity, the project’s loan attention could start to pile up and alter project economics. As such, grid joining bottlenecks represent a key risk to project developers.”
“In particular, the expectation for developers to launch low bids, despite substantial project implementation challenges, is set to remain a hurdle to India deploying enough renewables projects to meet ambitious expansion plans” report.
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