Companies’ revenue growth across Power sector expected to slow down to 3-4 per cent
Revenue of companies operating across the generation, transmission and distribution segments of the power sector is likely to record slower growth of 3-4 per cent in the second quarter of 2019, because of a slowdown in demand over the whole country, according to ratings agency CRISIL.
Average spot power price at a two-year low of Rs 2.77/unit in September: IEX
According to the Indian Energy Exchange (IEX), the average spot power price dropped to a two-year low of Rs. 2.77/unit due to low demand, improved coal supply and higher power generation.
The low price was primarily on account of low demand, improved coal supply, extended monsoon and subsequently improved hydro power generation.
Financing costs are the largest component of renewable energy tariff in India
“Financing costs account for the largest component – between 50 and 65 per cent – of present day renewable energy tariffs in India, and even higher shares in other developing countries where the risk premium is higher,” said a policy brief issued by Council on Energy, Environment and Water, a Delhi based NGO.
Thus, changes in financing costs could drive down renewable tariffs. This is possible if suitable policy and market-led interventions lead to de-risking of investments and increasing competition between various sources of capital.
Renewable capacity to exceed 175 GW target by 2022: MNRE
India has installed more than 82,580 MW of renewable energy capacity with around 31,150 MW of capacity under various stages of installation. Thus, by the first quarter of 2021, India would have installed more than 1,13,000 MW of renewable energy capacity, according to the Ministry.
39,000 MW is at various stages of bidding and would be installed by September 2021, with the total capacity reaching 87% of the target.
“With only 23,000 MW of renewable power capacity left to bid, India is confident that the target of installing 175 GW of renewable power capacity will not only be met, but exceeded,” the ministry said.