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The renewable energy sector has missed its capacity addition target for the second year in a row.
Against the target of 14,450 MW for 2017-18, the new capacity addition from all major segments stood at 11,754 MW, effectively achieving only 81 per cent of the target for the year ended March 31, according to data available with the Union Ministry of New and Renewable Energy.
However, the capacity addition in FY18 was slightly higher than the 11,320 MW added (against the target of 16,660 MW) in FY17.
Solar (ground-mounted), which continues to be the driver of clean energy capacity addition, and bio-power segments exceeded the capacity addition targets during 2017-18.
Solar (ground-mounted) ended the year with new capacity addition of about 9,010 MW, marginally higher than the the target of 9,000 MW. The rooftop solar segment added only 353 MW against the target of 1,000 MW.
New bio-power capacity in 2017-18 stood at 519 MW against the target of 340 MW. Small hydro power added a new capacity of 106 MW, higher than the target of 100 MW.
FY18 proved to be a challenging year for wind power, with the sector adding one of the lowest annual capacities in the recent years.
Against the target of 4,000 MW, this segment added just 1,766 MW.
As of March 31, the total grid-interactive installed capacity in the renewable energy sector stood at 69,022 MW.
The total installed capacity of wind power stood at 34,046 MW. Solar segment (both ground-mounted and rooftop) occupied the second position with a cumulative capacity of 21,652 MW.
Bio-power had a total capacity of 8,701 MW, while the small hydro segment’s cumulative capacity was 4,486 MW.
The waste-to-power segment’s capacity was 138 MW.
Wind power prospects
For the current fiscal, the wind power sector is bullish as it sees growth returning with a strong potential to add 10-12 GW annually over the next 2-3 years.
The wind power market will stabilise in the coming years as demand will be fuelled by both Central and State government auctions, Ramesh Kymal, Chairman & Managing Director, Siemens Gamesa India, said recently.
In solar, the capacity addition is likely to fall by about 40 per cent to 4-4.5 GW during this fiscal, mainly due to the subdued trend in tendering of solar projects since June 2017.
Also, uncertainty over the safeguard duty is a cause for concern, pointed out a report from rating agency ICRA.
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