New restrictions on the power sector’s banking will inhibit the growth of the rooftop solar and open-access solar market and potentially slow the progress of India’s renewable energy target, according to an analysis of Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research.
“New restrictions on banking of power will inhibit the growth of the rooftop and open-access solar market, and potentially slow progress towards India’s national target of 450 gigawatts (GW) of installed renewable capacity by 2030, according to a new briefing note by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research,” according to a statement.Banking allows renewable energy generators to deposit surplus power into the grid and withdraw it later when needed — much like putting money into a savings account at a bank.
