Imposition of auction ceiling prices and delays in commissioning of awarded projects have lowered near-term growth outlook of wind power sector in India, according to a report. In its latest report ‘Global Wind Power Market Outlook Update: Q2 2019’, Wood Mackenzie Power and Renewables said the current market conditions in India have bruised the region’s near-term outlook, resulting in a 4 per cent downgrade quarter-on-quarter (QoQ).
“The government-imposed auction ceiling prices and delays in commissioning awarded projects have slowed near-term growth expectations in India considerably — a decrease of 24 per cent from 2019 to 2022,” it said. India has set an ambitious target of installing 175 GW of renewable energy capacity by the year 2022, which includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power and 5 GW from small hydro-power. However, several recent reports have cautioned that India is unlikely to meet the capacity targets for wind and solar power.
