India’s renewable energy sector likely to add 45 GW by 2025: Report

livemint.com:

New Delhi: India’s renewable energy sector is poised for a major expansion, with projections suggesting an increase of around 45 gigawatts (GW) by the fiscal year 2025, according to a report from CareEdge Ratings. This boom in capacity is attributed to a substantial project pipeline and an attractive bidding roadmap luring developers into the space. CareEdge anticipates annual additions to the renewable energy capacity to oscillate between 20 and 25 GW over the upcoming two fiscal years, driven by a robust pipeline of over 55 GW assets in development.

“We anticipate annual renewable energy installations to hit around 20 GW in fiscal year 2024, primarily from solar, followed by over 25 GW in the subsequent year, culminating in an overall increase of 45 GW over the next two fiscal years," the report stated. A key catalyst in the expected surge of solar capacity is the one-year suspension of the approved list of module manufacturers (ALMM). This hiatus is seen as especially beneficial for over 25 GW of untapped solar capacity, where the settled tariff is below Rs.

2.5 per unit. The extension until March 2024 provides developers with added flexibility in wrapping up projects under construction. Moreover, the report underscores a positive trend in solar module prices, witnessing a considerable drop from 28-30 cents per watt to 21-22 cents per watt.

This reduction is projected to facilitate the installation of renewable energy capacity across India. Additionally, the commissioning of domestic module manufacturing capacity exceeding 50 GW is projected to result in annual foreign exchange savings of approximately Rs. 90,000 crore.