The increased focus on solar energy and recent policy changes, such as withdrawal of certain tax benefits in wind energy, could impact new investments in the latter and hamper India’s chances of achieving the target of 60 gigawatts (GW) of wind energy capacity by 2022, according to companies and analysts.
India has set itself the target of achieving 100GW of solar energy and 60GW of wind capacity by 2022. It currently has 27GW of wind and about 8GW of solar capacity installed. The country is adding solar capacity at its fastest pace and is attracting interest from global renewable energy firms, pension funds and sovereign wealth funds. In 2015-16, for instance, it added over 3GW of solar capacity and 3.3GW of wind energy. The previous year, it added 1.1GW of solar capacity and 2.3GW of wind. “In our opinion, the increased focus on solar power has had a negative impact on wind power as the latter struggles for funding and policy support,” ICICI Securities Ltd analysts Prakash Gaurav Goel and Apoorva Bahadur wrote in an 8 August report.