The Ministry of New and Renewable Energy (MNRE) has announced that it has issued a confutation on a recent report by rating agency CRISIL that had said India may not be able to accomplish its renewable energy capacity addition target of 175 Gigawatt by 2022.
“The doubts are ill-founded and not reflective of the status on the ground and plans ahead. The CRISIL report being referred to by the media is neither factually correct nor takes into account initiatives taken by MNRE to facilitate accelerated development and deployment of renewable energy in the country,” the ministry said in a statement, adding the report lacks credibility as CRISIL did not even bother to consult MNRE for its views.
CRISIL had said the country is likely to miss the target of 175 GW by 2022 by a full 42 per cent faced by regulatory challenge, policy flip-flops and also a steep fall in tariffs and the industry has been witnessing fast-waning interest from developers since the past fiscal.
By the end of September 2019, India had installed over 82,580 MW of renewable energy capacity with around 31,150 MW of capacity under various stages of installation. “Thus, by the first quarter of 2021, India would have installed more than 1,13,000 MW of renewable power capacity. This would constitute nearly 65 per cent of the targeted capacity,” MNRE said.
The ministry added that in addition around 39,000 MW of renewable power capacity is at various stages of bidding which would be installed by September 2021, taking the percentage of installed capacity to over 87 percentage of the targeted capacity. “With only 23,000 MW of renewable power capacity left to bid, India is confident that the target of installing 1,75,000 MW of renewable power capacity will not only be met but exceeded,” the statement said.
The ministry also said it has made efforts for transparent bidding and facilitation for procurement of power at competitive rates which have resulted in significant downward trend in solar and wind power tariffs. “Wind power tariffs has fallen from Rs 4.18 per unit in 2016 to Rs.2.43 per unit during last year and even today it remains below Rs 2.75 per unit. Similarly, solar tariffs have fallen from Rs 4.43 per unit (with VGF) to Rs 2.44 per unit,” MNRE said.
The official statement also asserted that India’s journey for expanding the share of renewables in the energy mix has not been without continuous challenges stating that when the Andhra Pradesh government announced intention to revisit already signed Power Purchase Agreements, the Ministry very quickly clarified that no PPAs can be revisited unless there is a clause to do so in such agreement or a case of malafide of corruption is proved beyond doubt.
India’s renewable power capacity has increased from 34,000 MW in March 2014 to 82,580 MW recording 138 percent growth. Globally, India stands at the fifth position in solar power, fourth in wind power and fourth in total renewable power installed capacity. If large hydro is also included, the country stands third in renewable power capacity globally
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