NEW : 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 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 demand. We are doing a scenario planning,” Anand Kumar, secretary at the ministry of new and renewable energy (MNRE), told ET. 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. “With falling solar and wind tariffs, India stands high chances of making it to the third position among renewable energy countries. But there are concerns of excess capacity, energy demand and implementation of the plan,” Amit Kumar, partner-renewables at PwC India, said. 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 . 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.
FY16 has increased its 2022 target for installed renewable energy capacity to 227 GW from 70 GW, said power and renewable energy minister Anand Kumar . The country currently has 227 GW of installed capacity and will spend $50 billion achieving the new target.