CareEdge Ratings said on Wednesday that the country’s annual renewable energy (RE) capacity is expected to exceed 35 gigawatts (GW) over the next two years, mainly supported by a healthy pipeline of over 100 GW of projects. said.
“The accelerated growth of RE over the past 12 months is the result of increased corporate ESG focus, heightened investor interest, active policy support and increased availability of financing options,” the rating agency said. said.
Overall, the country installed 18.5 GW of renewable energy in FY24, which is 21% more than the capacity added in the previous fiscal.
“With rising demand, CareEdge Ratings believes the solar PV equipment sector is likely to see capital expenditures of close to Rs 1,000 crore, with estimated debt financing of close to Rs 70,000 crore over the next three to five years.” said the company.
“Future cell capacity of 50 GW and module capacity of 80 GW will require capex of Rs 32,000 crore and Rs 12,000 crore, respectively, in addition to cumulative capex of Rs 55,000 crore, and wafer 40 GW and about 25 GW of polysilicon capacity granted under the PLI.
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The solar PV segment remains the main driver of capacity addition in the renewable energy sector, with significant capacity additions taking place over the past 7-8 years, with renewable energy’s share in the capacity mix rising from 15% to 2024. As of September, this had increased to 59%. As of March 2016.
India has increased its average annual solar power generation capacity on a direct current (DC) basis by about 21 GW in the past two years, with module capacity of about 70 GW and cell capacity of about 8 GW as of March 2024. We are proud of
According to CareEdge Ratings, medium-term solar capacity growth will be driven by an annual bid target of 50 GW of RE capacity through renewable energy implementing agencies, the majority of which is expected to come from solar PV.
Over the next two to three years, rooftop solar PV, hybrid solar PV components, and off-grid solar PV are expected to add significantly approximately 20 GW of capacity.
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Separately, 4-5GW of solar open access capacity is likely to be added in 2-3 years due to corporate ESG initiatives and improved economic viability of commercial and industrial (C&I) projects. .
Jatin Arya, Director, CareEdge Ratings, highlighted the important role of strong policy support to drive growth in solar PV equipment manufacturing in India, and said the Indian solar market is poised for transformational growth. He said that
He further added, “With a strong policy framework and a clear focus on sustainability, we can drive a major shift towards renewable energy that not only meets domestic needs but also positions India as a global player in solar power equipment manufacturing.” I am witnessing it,” he added.
However, the rating agency believes that shortfalls in integrated solar capacity, supply chain shortages, increased reliance on increasingly competitive China, and delays in renewable energy additions due to systemic issues will continue to play a role in the medium term. It warned that there were headwinds that could be monitored.
