India is to double the share of renewables in the power generation mix to 13 percent in five years, according to Rishab Shrestha, Wood Mackenzie's solar analyst on Monday.
According to Shrestha, India has an ambitious target to have a total capacity of 175 gigawatts (GW) by 2022, made up of 100 GW of solar and 75GW of wind capacity.
Even with significant cost declines, Wood Mackenzie expects about 76 percent of the target to be met by 2022.
"This would still be a noteworthy achievement," Shrestha said.
He stressed that the Indian government’s commitment and support for renewables remains strong having doubled the combined wind and solar capacity from 2014 levels to 61 GW this year.
"The government has been swift and adaptable at responding to various industry hurdles and are helping reduce project risks. As a result, renewable prices continue to remain competitive," the analyst said.
He added that in the next five years, capital costs are expected to decline by 23 percent for wind and 31 percent for solar.
"This trend will only continue as new generation technologies replace old ones. We expect non-hydro renewables to make up 13 percent of the power generation mix by 2023," he explained.
"Over the longer-term horizon of 2040, India is forecasted to increase its renewable capacity by around seven times to 384 GW. This share will be driven by diverse sub-segments, which include offshore wind, hybrid projects, floating solar and distributed solar. The 384 GW of non-hydro renewables will ultimately contribute 20 percent of generation share by 2040," he concluded.
By Murat Temizer