ICCK

India is estimated to add about 10 gigawatt (GW) of total renewable energy capacity in 2022, down 10 per cent year-on-year, according to clean energy consultancy firm Bridge to India.

“Capacity addition prospects would depend greatly on the timeline for clarity on transmission lines in Rajasthan and Gujarat. Many projects have already got force majeure relief on account of module supply disruption,” it said.

The consultancy’s early estimates for total capacity addition in 2021 is 11.2 GW, split between utility-scale solar with 7.8 GW, rooftop solar with 1.8 GW, and wind with 1.6 GW, 30 per cent below their projection for the year.

On basic customs duty (BCD), it added that the distributed solar business, both rooftop solar and open access, would take an immediate hit if it is imposed as expected, from April 2022 onwards.

“Utility-scale solar projects, already stuck because of the Supreme Court’s transmission order, would also be impacted adversely because of negative cash flow impact,” it said. A final announcement on BCD is expected as part of the Budget release on 1 February 2022.