NEW DELHI: India will add 227 GW of renewable energy capacity by March 2022, possibly

scaling up its ranking to the top three countries making investments in the sector.

Thermal power plant developers, however, voiced concerns on generation capacity glut and
underutilisation of projects amid stress in the sector.

The country will overachieve its 175 GW renewable energy generation capacity target on the
back of new schemes like floating solar, manufacturing-linked solar and offshore wind projects,
power and renewable energy minister RK Singh said on Tuesday.

The additional 52 GW capacity would require investment of $50 billion over the next couple of
years, senior ministry officials said.

“We’re planning for more because in case there is a spurt in demand, we should be able to meet
the d ..
Currently, India stands fifth in terms of renewable energy capacity with an installed capacity of
70 GW while another 40 GW is under tendering or construction and the government claims to be
on track for meeting its 2022 targets.
But there are concerns of excess capacity, energy demand and implementation of the plan,” Amit
Kumar, partner-renewables at PwC India, said.

China will continue to be the top renewable energy generator and the US, despite the declining
policy support, is likely to be on the second position, he said.

Bridge to India managing director Vinay Rustagi said, “Renewable energy is obviously very
compelling due to its low-cost and environmental benefits.

But we do not understan .. But we do not understand how so much new power can be absorbed
in the country. We already have existing surplus and are still adding about 5-6 GW of new
thermal capacity every year.”

Association of Power Producers director general Ashok Khurana said at 175 GW renewable
capacity, the National Electricity Plan had projected average utilisation of thermal projects at
58%. With 227 GW, it will fall more. “New capacity addition has to be demand-driven. We
already have stranded 40 GW, looking for offtake agreements,” he said.

RK Singh said the finance ministry is soon expected to hold a meeting on stressed assets upon
the directions of Allahabad High Court.

Distribution companies cannot back down purchase of power from renewable energy projects
and the draft national tariff policy proposes mandatory renewable purchase obligation on states.
Singh said power demand has improved and is expected to rise further upon implementation of
household and village electrification schemes, financial stability of distribution companies and
the government’s plan to penalise discoms for load shedding.

The national aggregate distribution losses of discoms have halved to Rs 17,532 crore in FY18
from Rs 51,096 crore in FY16. He said the gas-based power plants will be utilised for grid
stability with growth of renewable energy generation.