Strong points :
We cannot reach the 500 GW target without reaching 40 GW every year.
The addition of new non-hydro renewable energy capacity increased to 15.5 GW in FY22, according to the latest edition of the CEEW Center for Energy Finance (CEEW-CEF) Market Handbook May 6. Compared to the 7.7 GW installed in the previous fiscal year, this is quite an improvement. However, this is cold comfort given that India has an ambitious target of installing 500 GW of non-fossil fuels by 2030, which we cannot achieve without installing 40 GW per year.
The main reason attributed to the poor performance is the severe shortage of coal in the country, the report said. As the economy reopened in FY22, demand for electricity exploded massively, leading to a huge drop in energy supply of 1.4 GW in March 2022, compared to just 0.5 GW in FY22. same period last year, says the report. On the other hand, there has been a 100% increase in renewable energy capacity. This can provide a significant degree of protection against supply chain issues that plague conventional energy sources. However, issues such as battery storage need to be resolved on a war footing. Other innovative supply formats such as “Hybrid” and “Round-the-Clock” (RTC) also provide protection against power intermittency.
Driven by the increase in rooftop solar installations to 2.3 GW, solar accounted for 90% of the total renewable capacity added during the year. Higher module costs and the impending imposition of basic tariffs led to an increase in the lowest discovered solar tariff to Rs 2.14 per kWh in FY22 from Rs 1.99 per kWh in FY21. Overall, renewables formed more than 89% of the total 17.3 GW of capacity added in the power sector in FY22.