NEW DELHI: India’s renewable energy capacity addition is estimated to touch 16 GW in the next financial year in view of the strong pipeline of 55 GW clean energy projects, as per a study by ICRA. The study reads the renewable energy capacity addition to increase from 7.4 GW reported in FY21 to 12.5 GW in FY22 and further to 16 GW in FY23.
“The outlook for the capacity addition in the Renewable Energy (RE) sector remains strong with a large project pipeline of over 55 GW and the highly competitive tariffs offered by these projects,” said the rating agency in a statement. The capacity addition witnessed a strong recovery in the first eight months of FY’2022 (April to November 2021) with 8.2 GW added against 3.4 GW added in the year-ago period.
The commitment to climate change goals announced at the recent COP26 summit, including increasing the non-fossil power capacity to 500 GW and meeting 50% of energy needs from renewable sources by 2030, further strengthens the investment prospects in the sector.