The government said it is on track to exceed the previously set target.
India has raised its 2022 renewables capacity target from 175GW to 227GW, according to vice president Venkaiah Naidu.
“This target is now further raised to 227 GW of renewable energy capacity, considering that we are well on our way to exceeding the previously set target,” the official said in a speech.
Citing the challenge of climate change, Naidu said, “We need to change our development paradigm and aim for climate resilient development, moving away from traditional metrics of measuring development. The new urban infrastructure should be low-carbon, green and climate resilient.”
Previously, analysts suggested that India is unlikely to hit its renewables capacity target of 175GW in 2022. According to Wood Mackenzie solar analyst Rishab Shrestha, India has new issues plaguing auctions and investment that would hamper the country from reaching its targets.
“The recent cancellation of auctions risks jeopardising investor confidence. Various duties on equipment and the associated uncertainty has led to a short-term uptick in solar prices,” he said in a comment.
“This leads to a knock-on effect on already cash-strapped state distribution companies who are showing an unwillingness to greenlight high priced solar projects,” Shrestha added.
However, according to Tim Buckley, director, Energy Finance Studies, Australasia, Institute for Energy Economics and Financial Analysis (IEEFA), the momentum is still very positive, with 26GW of new solar tenders in train and Prime Minister Narendra Modi’s $70-80b of renewable energy investment in the next four years.
Buckley added that the country’s ambitious targets are not without rationales, as community concerns rise over excessive air pollution and associated health costs, especially in New Delhi.
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