Mumbai: The electricity generation in the country will see an increased share from renewable energy by up to 18 percent by 2022. It will go up by 7.8 percent from present figures due to the fact that the present focus is on capacity addition from sources like solar and wind energy, a report said today.
Global rating agency Moody’s Investors Service in its report said that the country India is going on with its power generation policy as per the Paris Climate Agreement under its Nationally Determined Contribution (NDC) commitments and has taken many such positive steps in this regard.
“Renewable energy’s share of new capacity additions for power generation has been the largest at around 60 percent over the last two years, while additions to coal-fired generation capacity have slowed sharply,” said Abhishek Tyagi, vice-president and senior analyst, Moody’s Investors Service.
He further said that the many large companies too have come in front and announced their plans to make their operations more energy-efficient and source more renewable energy.
As per the agency’s claim, renewable energy share in the field of electricity generation mix is likely to rise to about 18 percent by the year 2022 and this close to 7.8 percent as of March 2018.
According to it, the total share of fossil fuel-based electricity generation capacity is much likely to fall to about 50-55 percent by the year 2022, from 67 percent currently.
“This trend in part reflects the fact that wind and solar tariffs are now in most cases either comparable with or lower than domestic coal-based projects,” said Mr. Tyagi.
The capacity of existing coal-fired utilization has been falling since the year 2010 and was almost 59 percent in FY18, as per the report, while the annual growth in coal-fired capacity is likely to slow down up to 4-5 percent over the coming next five years.
Despite its strong growth prospects, Mr. Tyagi said, that the renewable energy sector faces many challenges.
“The renewable energy sector faces challenges, including the weak credit profiles of many off-takers, which are typically state-owned distribution companies, while India’s renewable energy policy framework continues to evolve,” he said.
Moreover, he further added that the expanding of renewable energy capacity would require similar growth in the infrastructure of transmission for the efficient evacuation and inter-regional transmission of electricity.
In line with the NDC commitments made by India, the country is targeting 40 percent of cumulative capacity from non-fossil fuel-based sources by the year 2030 and the same was about 35 percent in the month of June.
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