India's Renewable Energy Generation Capacity

India's renewable energy generation capacity will reach 125 GIGAwatts by December 2022

India's cumulative renewable energy capacity will reach 120-125 GIGAwatts by December 2022.According to ICRA analysts, 50 per cent of this comes from solar, 38 per cent from wind and the rest from other sources.

Analysts expect utility-scale solar capacity to meet the government's target of 60 gigawatts.On the other hand, there will be shortages in rooftop solar and wind power.

Sabyasachi Majumdar, Head of ICRA Group and senior vice President of corporate ratings, said: "While (the estimated 120-125 GW) is below the 175 GW generation target set by the Government of India (GoI), it is expected that new capacity will remain at 33-38 GW over the next two and a half years and investment expenditure will exceed Rs 2 crore."

ICRA expects this to be supported by a large number of projects awarded by central notional agencies and national power distribution companies (DISCOMs) and may improve the implementation schedule.

In fiscal year 2021

Due to supply chain disruptions and labor availability issues, ICRA expects renewable power generation growth to remain at around 8 GW in FY2021, with continued implementation challenges due to COVID-19.

"The 7.5-8GW renewable energy estimate for FY2021 will include 5-5.5GW of solar (mainly utility-scale solar) and approximately 2GW of wind."Girishkumar Kadam, head and vice President of ratings at ICRA.

Nonetheless, ICRA expects that competitive electricity prices, policy support and new initiatives such as peak supply, 24/7 supply and hybrid renewable energy heating will provide strong support for the overall investment outlook for the renewable energy sector in the medium to long term.