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While the pace of growth of renewable energy has slowed in India, positive outcomes in recent auctions suggest there remains plenty of appetite among domestic and foreign investors to build renewable infrastructure, according to a media statement issued today by the Institute for Energy Economics and Financial Analysis (IEEFA).
The US-based IEEFA examines issues related to energy markets, trends and policies globally. The institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.
Also read: India gets set to transition to next phase of renewable power capacity, RE 3.0
The statement said that policy-related headwinds and a collapse in electricity demand due to the Covid-19 crisis have disrupted India’s renewable energy capacity tendering and commissioning process. But despite these setbacks, renewables are proving resilient with investment capital available for new projects with favourable risk-return profiles, said Kashish Shah, Research Analyst at the IEEFA, in the statement.
The institute looked at the outcomes of seven renewable energy capacity and storage auctions held to date in 2020. It found that together they attracted some $10-20 bn of investment commitments, despite the pandemic.
It pointed out the Solar Energy Corporation of India’s 2GW solar auction in June as a particular highlight. It delivered India’s lowest-ever renewable energy tariff at ₹2.36 per unit.
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