Renewable energy sector needs $76 bn to meet 104-Gw balance target by 2022

The government has set a target of installing 175 Gw of renewable energy capacity by 2022. As of June 2018, 71.33 Gw of renewable energy capacity has been installed in the country. To achieve the balance target of 103.67 Gw, an investment of around $76 billion is required.  

This amount has been estimated at present capital cost, which includes $53.20 billion as debt and $22.80 billion as equity for a debt-equity ratio of 70:30, according to the Central Electricity Regulatory Commission (CERC) norms.

In 2016-17, an aggregate capacity of around 11,322 Mw of renewable energy was installed in the country. In 2017-18, an aggregate capacity of around 11,887 Mw was installed. 

"Renewable energy installations in the country are progressively increasing and do not appear to be facing any major challenges at present," said R K Singh, Union Minister of State (IC) Power and New & Renewable Energy.

India's renewable energy sector is consistently growing and continues to remain attractive to investors from across the world.

Solar tariffs in India saw their lowest ever level of Rs 2.44 per unit in reverse auctions carried out by the Solar Energy Corporation of India (SECI) in May 2017 for a 200-Mw project and again in July 2018 for a 600-Mw project.

"The country's renewable energy sector is attracting companies from across the world. However, as details regarding their fund tie-ups for projects are not required to be submitted at the auction stage, this ministry has no information about the capital structure/composition of the companies participating in renewable energy auctions. Thereby, indicating the absence of any major challenges to low solar tariffs in India," said the minister.

A total of around 69,784 Mw of renewable energy capacity has been installed in the country as of March 2018 from all renewable energy sources -- around 34,145 Mw from wind, around 21,651 Mw from solar, around 4,486 Mw from small hydropower, and around 9,502 Mw from bio-power.

The government's target of installing 175 Gw of renewable energy capacity by 2022 includes 100 Gw from solar, 60 Gw from wind, 10 Gw from biomass, and 5 Gw from small hydro capacity.