Wood Mackenzie Predicts India Will Achieve 76% of Renewable Energy Target By 2022
India may achieve about 76 percent of the target of having 175 gigawatts of renewable power generation capacity by the scheduled date of 2022 amidst countless challenges. India is targeting 100 GW of solar capacity and 75 GW of wind power by 2022. With significant cost declines, Wood Mackenzie expects about 76 percent of the target to be met by 2022 and this would still be a noteworthy achievement as per its reports. Various duties on equipment and the associated uncertainty has led to a short-term uptick in solar prices. This leads to the knock-on effect on already cash-strapped state distribution companies who are showing an unwillingness to green light high priced solar projects. Nonetheless, the government’s commitment and support towards renewables remain strong.
The government has been swift and adaptable at responding to various industry hurdles and are helping reduce project risks. As a result, renewable prices continue to remain competitive. Wood Mackenzie said combined wind and solar capacity have almost doubled from 2014 levels to 61 GW this year. Driving this growth is the significant cost decline that auctions continue to deliver Shrestha said. In the next five years, capital costs are expected to decline by 23 percent for wind and 31 percent for solar. This trend will only continue as new generation technologies replace old ones. Wood Mackenzie expected non-hydro renewables to make up 13 for percent of power generation mix by 2023.
Improving grid flexibility through storage and flexible power generation will be extremely crucial in achieving high levels of renewable penetration, it said, adding that economic competitiveness, technological maturity, and financially healthy off-takers will provide a solid base for renewable capacity growth to cater to electricity demand growth.
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