31 Jan 2020

Utility scale solar and wind capacity grew at a healthy 29% and 36% respectively over previous year although performance was well below the record numbers seen in 2017. Rooftop solar growth slowed down sharply to 15% due to net metering and financing challenges.

Figure 1: Capacity addition, MW

Source: BRIDGE TO INDIA research

DISCOM dues to power generators rose significantly to an estimated INR 810 billion, an increase of 111% over the previous year. Weak financial position of DISCOMs is causing jitters across the sector and weakening the sector sentiment.

Figure 2: DISCOM dues to renewable power generators, INR billion

Source: BRIDGE TO INDIA research, PRAAPTI portal

Note: December 2019 values are an estimate.

Utility scale tender issuance stayed robust at 46,621 MW although it was down 20% over the previous year. Capacity allocation fell to 12,426 MW (central agencies 9,226 MW, state agencies 3,200 MW), down 39% Y-o-Y.

Figure 3: Tender issuance and auctions, MW

Source: BRIDGE TO INDIA research

Solar PV module prices rose briefly towards the middle of the year, but fell below USD 0.20/ W by the end of the year mainly because of weak demand in China. The fall in module prices alongside steady fall in inverter prices and BOS costs provided much needed relief to developers.

Figure 4: Solar PV module prices, USD cents/ W

Source: BRIDGE TO INDIA research

Note: These prices are for imported modules on a CIF basis (before any local tax or duty).

In 2019, wind power generation was up just 4% compared to 2018. In comparison, solar energy generation was up 18%. RE penetration in the energy mix remained largely unchanged Y-o-Y.

Figure 5: Renewable power generation, million kWh

Source: BRIDGE TO INDIA research

Note: Generation data for December 2019 is not available.

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