Markets - 07/December/2018

Economic woes take wind out of India sales

Financial problems are currently the biggest block to wind energy achieving its full potential in India and with elections forecast for 2019, the situation will not be resolved in the coming months

India has a huge wind resource, enough to power 300 gigawatts (GW) of installed wind turbines, according to the country’s National Institute of Wind Energy. By the end of 2017, nearly 33 GW of that potential had been developed, with India in fourth place globally for installed wind capacity after China, the US and Germany. That year, the country built another 4 GW, a record annual figure, reports the Global Wind Energy Council (GWEC). Even so, to reach the Indian government’s wind goal of 60 GW by 2022, project developers will have to speed up their build rate to 5.4 GW a year.

The government’s target and the industry's aspirational goal of 10 GW a year for onshore wind is definitely possible, says DV Giri, secretary general of the Indian Wind Turbine Manufacturers Association. He cautions, however, that the sector is going through a transition and that it will take a while before it can realise its full potential. This is partly linked to a change in the procurement model from premium purchase prices at a fixed rate to competitive bidding for contracts, which means the wind industry is now dependent on the Solar Energy Corporation of India (SECI) issuing tenders to get new wind farms built. So far, SECI’s five auctions have resulted in contracts being awarded for 7200 megawatts (MW) in total. The lead time for bidders after each auction announcement is 18 months, resulting in a slow moving market. ...

Try FORESIGHT - 30 days for €29

Already a subscriber?

Comments are closed.

Related articles

With the right regulations and better understanding of the advantages of wind and solar over other asset classes, investors can play a key role in speeding up the transition to a clean energy economy

Investors get creative to fund low carbon shift

With the right regulations and better understanding of the advantages of wind and solar over other asset classes, investors can play a key role in speeding up the transition to a clean energy economy

Trucks and ships could be two means of transport running on hydrogen gas, produced using electricity, in the coming years

Hydrogen makes its case as a niche clean transport option

Trucks and ships could be two means of transport running on hydrogen gas, produced using electricity, in the coming years

As heavy industry, business and investors rally round the 2050 strategic climate change vision launched this week by the European Commission, Jonathan Gaventa, Brussels-based Director of E3G, believes this is a defining moment for the energy transition globally

A turning point: Europe’s climate neutral 2050 vision

As heavy industry, business and investors rally round the 2050 strategic climate change vision launched this week by the European Commission, Jonathan Gaventa, Brussels-based Director of E3G, believes this is a defining moment for the energy transition globally

As emissions from global aviation rise, companies are beginning to look closely at the idea of using electric planes for short-haul flights as a potential solution

Electric flight prepares for takeoff

As emissions from global aviation rise, companies are beginning to look closely at the idea of using electric planes for short-haul flights as a potential solution

The reaction of the Australian government to the recent IPCC report was to reject a phase out of coal. But with research showing new wind and solar are competitive with new coal, economics, not politics, looks set to define the country’s energy mix

Energy transition economics outpace Australian politics

The reaction of the Australian government to the recent IPCC report was to reject a phase out of coal. But with research showing new wind and solar are competitive with new coal, economics, not politics, looks set to define the country’s energy mix

Cement industry finds it difficult to ditch bad habits

The cement sector has accepted the size of its carbon footprint, but it will take greater pressure from regulators and NGOs to force the industry to totally change its ways

FORESIGHT Climate & Energy

FORESIGHT Climate & Energy is the essential read on the global transition to a decarbonised energy economy — objective reporting on what really matters by expert journalists and writers.

© 2023 Foresight