India to achieve 76% of 2022 renewable energy target: Wood Mackenzie report

India could make 76% of its 175GW renewable energy generation capacity target by 2022 after being faced with multiple challenges, according to consultancy group Wood Mackenzie.

The world’s leading research firm said that even with significant cost declines in the renewables sector, India meeting around 76% of its target would still be a notable achievement.

“The recent cancellation of auctions risks jeopardising investor confidence. Various duties on equipment and the associated uncertainty has led to a short-term uptick in solar prices,” said Wood Mackenzie’s solar analyst Rishab Shrestha.

“This leads to the knock-on effect on already cash-strapped state distribution companies who are showing an unwillingness to green light high priced solar projects,” he added.

Despite facing these challenges, the Indian government’s commitment to renewables remains strong. Wood Mackenzie found that combined wind and solar capacity have almost doubled from 2014 levels to 61GW this year.

“Driving this growth is the significant cost decline that auctions continue to deliver. In the next five years, capital costs are expected to decline by 23% for wind and 31% for solar. This trend will only continue as new generation technologies replace old ones.”

In the long-term, India has been forecasted to increase its renewable capacity by around a factor of seven to 384GW by 2040. This capacity will comprise of offshore wind, hybrid projects, floating solar and distributed solar.