RE long-term demand outlook is positive: Icra
Press Trust of India, Mumbai, Jul 12 2017, 0:39 IST
Owing to improving cost competitiveness of wind and solar power coupled with favourable policy support from both Central and state governments, the long-term demand outlook for renewable energy (RE) sector looks strong, said Icra.
According to a study by the rating agency, the improving cost competitiveness for renewable energy players has been driven mainly by competitive bidding process followed as well as a significant fall in photovoltaics (PV) module price levels over the last three year period for solar players.
“Even under a conservative assumption of overall renewable purchase obligation (RPO) at 15% (comprising 10% non-solar RPO and 5% solar RPO) by fiscal 2022, the incremental cumulative RE requirement for the period FY2018-FY2022 is estimated at 65 GW, which is quite significant,” said Icra nior Vice President and Group Head Sabyasachi Majumdar.
Within this, he said, Icra estimates the share of wind and solar energy capacity addition requirement to be at least 35% and 55%, respectively.
According to a study by the rating agency, the improving cost competitiveness for renewable energy players has been driven mainly by competitive bidding process followed as well as a significant fall in photovoltaics (PV) module price levels over the last three year period for solar players.
“Even under a conservative assumption of overall renewable purchase obligation (RPO) at 15% (comprising 10% non-solar RPO and 5% solar RPO) by fiscal 2022, the incremental cumulative RE requirement for the period FY2018-FY2022 is estimated at 65 GW, which is quite significant,” said Icra nior Vice President and Group Head Sabyasachi Majumdar.
Within this, he said, Icra estimates the share of wind and solar energy capacity addition requirement to be at least 35% and 55%, respectively.
