Capacity addition in the renewable energy sector fell by 42 per cent in the third quarter of the current fiscal. For the first nine months the decline was 46 per cent, according to MNRE data.

For the December 2020 quarter, renewable sector added just 1,924 MW new capacity when compared with 3,319 MW in the year-ago quarter. For the 9-month period of this fiscal, the total new capacity added to the grid was 4,076 MW (7,592 MW) representing 28 per cent of the target set for the renewable sector in this fiscal.

The solar segment continues to drive new capacity addition at 2,837 MW (includes of 1846.5 MW of ground-mounted and 990.3 MW of rooftop) capacity during April-December 2020 period. Wind sector added 880 MW of new capacity to the grid, according to the data of Union Ministry of New and Renewable Energy.

As of December 2020, the total grid-connected renewable power capacity in India stood at 91,154 MW, of which wind power was 38,624 MW. Solar segment had a cumulative installed capacity of 37,465 MW (includes both ground-mounted 33,959 MW and 3,506 MW of rooftop capacity).

“While solar module prices fell due to stoppage of construction work on account of Covid-19, the prices shot up in the second half of 2020 due to supply chain disruptions and spurt in international demand,” according to renewable energy consulting firm Bridge to India.

Mono-PERC module prices dropped to a low of $0.18/W in July 2020 but have since increased by more than 16 per cent to $0.21-0.22/W during December 2020 quarter. This appears to have delayed installations.

After a muted scenario in October and November, tender issuance shot up in December and January. Supported by Andhra Pradesh tender, close to 8,000 MW of utility scale and 85 MW of rooftop tenders were issued in December. In January 2021, about 6,963 MW of renewable tenders were issued.

Meanwhile, the Union Budget 2020-21 has announced some measures to revive the momentum in the renewable sector.

“Announcement of the framework for improving the health of discoms (power distribution companies) and allocation of ₹1,000 crore to the Solar Energy Corporation of India could help lower counter-party risk for renewable power generators. Also, setting up a domestic financial institution with an initial capital of ₹20,000 crore and allocation of ₹1,500 crore to the IREDA should ease availability of debt,” says Manish Gupta, Senior Director, CRISIL Ratings.

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