Bridge to India forecast 68 GW renewable capacity addition in five years

The three states with the best overall growth prospects for renewable energy projects were Gujarat, Maharashtra, and Karnataka.

According to a recent survey by the solar consultancy firm Bridge to India, the country is expected to add 68 gigawatts (GW) of renewable power capacity in the next five years. 

The recent forecast is slightly more from the previous year’s estimate of 60 GW. The report placed solar power in  the lead role accounting for 65 percent of this capacity additions.

A survey on state growth prospects for renewable energy projects identified Gujarat, Maharashtra, and Karnataka as the top three states.

There were some 44 Indian and international companies that took part in the renewable energy CEO survey conducted by the renewable energy consultancy Bridge to India.

The report presented a lukewarm outlook for the grid-scale storage and module manufacturing with only 10 GW and 7 GW of capacity addition expectations, respectively, over the next five years.

While the sector’s prospects are very optimistic, the crippling financial health of discoms, increasing offtake risk, and policy changes continue to concern industry players. Projects auctions were also perceived as irrationally aggressive by the industry, pointed out in the report.

The survey also found that nearly every demand and supply-related factor was considered challenging or extremely challenging, including transmission infrastructure, debt financing and import duties.

“The industry mood is surprisingly upbeat, buoyed perhaps by the huge government targets and strong investor appetite. But, views on capacity addition and most policy initiatives as well as operational issues are more mixed,” said Vinay Rustagi, managing director, Bridge to India.

While on one hand, most of the respondents were of the view that new policy reforms like delicensing the power distribution business, privatizing discoms, and the Electricity Amendment Bill will be effective for the industry, but implementation challenges might hinder progress,” the survey added.

Meanwhile, the survey results suggest mixed reactions from the industry to policy measures such as the basic customs duty, Approved List of Models and Manufacturers, and the PSU scheme to support domestic manufacturing.

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