Wind energy capacity addition to remain subdued this fiscal: Report

Wind energy capacity addition is likely to be subdued this financial year amid challenges like payment delays from discoms and a tight financing environment, an ICRA report said on Wednesday. Though on a year-on-year basis, capacity addition is likely to improve to about 2.5 GW in FY2020, from 1.6 GW in FY2019, achieving the 60 GW target set by the government by December 2022, remains a challenge, the report said.

“In this context, ICRA has recently revised the outlook for the wind energy sector from stable to negative,” an ICRA statement said.

According to ICRA, the wind power sector is facing significant challenges because of delays in making payments by the state distribution utilities and execution delays being faced by the projects.

This apart, the tariff uncertainty for the wind power projects in Andhra Pradesh has affected investor sentiments in the sector. This is also reflected in the slowdown in the tendering activity of wind power projects by 67 per cent to 2.3 GW in CY2019 (calender year) from 6.9 GW in CY2018.

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