Growth in India’s renewable energy sector has slumped to a five-year low
NEW DELHI: Renewable energy generation grew at 5.7% in the seven months to October 2019, falling sharply from 28.5% in the year-ago period and 25% in 2018-19, data issued by the Central Electricity Authority (CEA) said.
Government officials said curtailment of generation by states and slowdown in overall electricity demand are the key factors behind the low renewable energy generation. The growth has been around 20% per annum in the last five years. Data prior to 2014 is not available.
Besides, weak finances of state power distribution companies also impacted renewable energy generation. Industry sources said Andhra Pradesh, Telangana, Tamil Nadu and Rajasthan are some of the states curtailing renewable power even as the projects enjoy a ‘mustrun’ status. States are not letting renewable energy plants generate as they do not want to submit bank guarantees or letters of credit in favour of such plants.
