Weekly Power Sector Round up: 21st August 2021

GDP to expand 20% in Q1; to be lower than pre-COVID levels: ICRA

GDP growth is estimated to be 20% in Q1 2022, which is deceptively high as the GDP will still remain below pre-COVID levels, according to ratings agency ICRA. The high growth is on account of the low base since the GDP had contracted 24% in Q1 2021.

The rating agency cautioned that the organised sector is expected to have gained at the cost of the informal sector during this period. The available statistics are often unable to capture the pain experienced by the latter, which may result in an overestimation of growth under the present circumstances, it added.

Share of non-hydro renewables in India’s generation mix crosses 25%

The share of non-hydro renewable energy (RE) capacity in India’s power generation mix has crossed 25% of the first time, according to a report by CEEW Centre for Energy Finance.

Non-hydro RE accounted for 25.2% of the total generation mix in Q1 2022, up from 24.7% in Q4 2021.

Further, for the first time in 14 quarters, no new coal-based capacity was added in India. The report also said that lockdown-related delays and extensions were mainly responsible for limiting the total RE capacity auctioned in Q1 2022 to a mere 425 MW, down 89 per cent from the 4.4 GW auctioned in Q1 2021.