It added that the country’s total wind energy capacity would only reach 50 GW by 2022 as existing the pipeline and new auctions face multiple challenges
New Delhi: India, the world’s fourth-largest onshore wind market by installations, is likely to fall short of its ambitious wind energy target for 2022 by up to 10 gigawatt (GW) if urgent regulatory challenges are not addressed, according to a latest report.
It added that the country’s total wind energy capacity would only reach 50 GW by 2022 as existing the pipeline and new auctions face multiple challenges. India has set an ambitious 175 GW renewable energy target by 2022, of which 60 GW is due to come from wind energy.
In 2020, supply chain disruptions due to the COVID-19 impact would further compound existing challenges to delay about 0.7 GW to 1.1 GW in new volume to 2021 and also possible cancellation of some planned auctions, according to the report released on Wednesday by the Global Wind Energy Council and MEC+.
“Project installation has been decelerating recently, with only 2.3 GW installed in 2019, nearly half of the 4.1 GW installed in 2017. Even in the high case scenario, the country is likely to fall short of its ambitious wind energy target for 2022,” said the report titled ‘India Wind Outlook Towards 2022: Looking beyond the headwinds ’.
According to Sidharth Jain, founder and CEO at MEC+, the immediate impact of COVID-19 would be a delay in the projects scheduled for the first and second quarter of 2020, however, more far reaching results could impact up to 3.5 GW of volumes due to projects with thinly spread developers, financial crisis, and limited new auctions.
The report added that challenges such as grid and land availability, off-taker risks, onerous tender conditions, and low tariff caps have led to the past three Central tenders and all state wind tenders to be unsubscribed, retendered or even cancelled, while 80 per cent of awarded projects have been delayed by 6-12 months.
“The government has put in place ambitious renewable energy targets in order to fulfil the country’s growing energy demand, which is set to double over the next 10 years… Setting realistic prices, a faster build out of grid infrastructure, ensuring market liquidity and streamlining land allocation and site development will be crucial to revive auction appetite and accelerate execution of India’s pipeline of wind energy projects,” said Ben Backwell, chief executive officer at GWEC.
India is the world’s fourth-largest onshore wind market by installations, with 37.5 GW of capacity as of 2019, and has the potential for more than 695 GW at 120 metres. The government has set a target to reach a total wind capacity of 140 GW by 2030.