Solar power fastest growing new energy source in India: Mercom
Mercom Capital Group , a global clean energy communications and research firm estimates solar installations in India to total 5 GW in 2016. Cumulative solar installations in India crossed the 7.5 GW mark in May 2016. About 2.2 GW new capacity has been installed so far this year and it is more than total solar capacity installed in 2015. India’s solar project pipeline has now surpassed 22 GW with 13 GW under construction and 9 GW in the request for proposal process. The Indian solar market is growing in size but the question is: is it too much too fast, since infrastructure and systems have not kept pace with auction announcements. For the sector to move from 2 GW to a 10 GW a year market, work still needs to be done,” commented Raj Prabhu , CEO and Co-Founder of Mercom Capital Group. The government has shown a strong commitment to renewables and it’s push towards solar is beginning to show results, at the end of FY2015-16, solar represented 2.5% of net installed power generation capacity in India, up from 1.4 % a year ago, and was the fastest growing new energy source in the country. Solar accounted for 17.4% of all renewable energy generation in FY2015-16 compared to 10.5 percent in FY2014-15. Low bidding levels through reverse auctions have been a major concern at a time when the Indian banking sector has been going through its own challenges, which could make borrowing much more difficult in the short-term.