Only 5,000 MW solar installations likely in India in 2020
Industry tracker Mercom said in a report that with project timelines getting extended due to the COVID-19 pandemic, India is expected to add only 5,000 MW of solar capacity in 2020. This is 32% less than last year when the country added 7,346 MW solar capacity. In its former estimate, the agency had projected a capacity addition of 8,500 MW during 2020.
The study also ffound that India added 1,080 MW solar capacity in the first quarter of 2020, which is the lowest in a quarter since October-December (Q4) 2016. This is also a 39% dip as compared to 1,761 MW added in the corresponding period last year.
“The lockdown in the country disrupted the supply chain, lowered power demand, resulted in currency fluctuations making component costs unpredictable, and has exacerbated the liquidity issues,” Mercom Capital Group Chief Executive Raj Prabhu stated.
“As the market gets ready to open back up, we can expect to see shortages, resulting in an increase in labour and component costs in the near-term. The next couple of months are critical, and any further extensions could mean further reductions in our forecast,” he added further.