New Delhi, 14 May (IANS). According to the report released by Crisil Ratings on Wednesday, storage-back renewable energy (RE) installed capacity in India is expected to increase to 25-30 GW (GW) by the financial year 2027-28, which is almost zero during 2024–25.
The report said that the total renewable capacity will be more than 20 percent of the total renewable energy capacity added in three years.
Storage-back RE Project Renewable provides an effective solution for intermittent nature of energy generation.
Such projects supply electricity when required, which gives support to grid stability.
For example, these projects can provide green power on monthly or per hour schedule or in morning and evening peak hours.
The government is emphasizing these projects to make renewable energy a permanent part of the country’s power mixture.
Recently, the tender auction saw high amounts of these projects, which is about 25 percent (or 11 gW) of the total capacity given by central agencies in the year 2024, while it is 11 percent (or 2.5 gW) in the calendar year 2023.
Given high-energy requirements, these projects require an average oversizing up to 2.5 times of contractable capacity. As a result, a cumulative capacity pipeline of about 34 GW has become a pipeline.
However, almost the entire capacity provided through these tenders is either in the stage of growth or in the early stage of construction, causing the risks inherent in the project starting.
According to the report, risk in these projects usually appear as offtake agreements, funding and execution delays. However, we feel that the risk for commissioning will be minimal moderate, especially offtec and funding risk. In addition, the active approach of developers, especially to land and connectivity requirements, will help limit the construction risks.
According to the report, the availability of funding will also not be a major challenge, as the project will increase the interest of lenders with a good possibility of cash flow after the project starts with a good possibility of cash flow.
Ankush Tyagi, Associate Director of Crisil Ratings, said that “finally, the execution risk related to construction seems to be moderate. Based on our understanding from the developers, about 70 percent of the capabilities provided in the calendar year 2024 have identified the important resources, mainly the necessary resources and grid connectivity before participating in the bid.”
-IANS
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