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Renewable energy capacity to exceed 175 GW target by 2022: MNRE

New Delhi: The New and Renewable Energy Ministry on Thursday denounced a Crisil report that stated the ministry may miss the renewable energy target by 42 per cent, and asserted that the clean power capacity by 2022 will exceed the goal of 175 GW.

The ministry termed the report as "ill founded", factually incorrect and lacking credibility, and pointed out that Crisil even did not consult it for its views on the target.

The report by Crisil highlighted that the country is likely to miss the renewable energy target of 175 GW by 2022 by a wide margin of 42 per cent due to many a regulatory challenge, policy flip-flops and also a steep fall in tariffs.

"The CRISIL report...is neither factually correct nor takes into account initiatives taken by the MNRE to facilitate accelerated development and deployment of renewable energy in the country. This report lacks in credibility in all respects as CRISIL did not even bother to consult this Ministry for its views...doubts are ill-founded and not reflective of the status on the ground and plans ahead," the ministry said in a statement.

It said the New and Renewable Energy Ministry (MNRE) refutes reports expressing doubt on India's renewable energy target.

By the end of September 2019, the ministry said India has installed more than 82,580 MW of renewable energy capacity with around 31,150 MW of capacity under various stages of installation. Thus, by the first quarter of 2021, India would have installed more than 1,13,000 MW of renewable power capacity.

This would constitute nearly 65 per cent of the targeted capacity, the ministry said.

Besides this, around 39,000 MW of renewable power capacity is at various stages of bidding which would be installed by September 2021, taking the percentage of installed capacity to over 87 per cent of the targeted capacity, it said.

"With only 23,000 MW of renewable power capacity left to bid, India is confident that the target of installing 1,75,000 MW of renewable power capacity will not only be met but exceeded," it said.

The ministry said it has worked systematically to resolve various issues that arise from time to time, putting in place facilitative and ease of doing business policies and programmes for achieving the goal.

These initiatives have resulted in significant downward trend in solar and wind power tariffs as a result of which the wind power tariffs have fallen from Rs 4.18 per unit in 2016 to Rs 2.43 per unit during last year and even these remain below Rs 2.75 per unit, at present. Similarly the solar tariffs have fallen from Rs 4.43 per unit (with VGF) to Rs 2.44 per unit. The Government of India's endeavour remain that renewable power is procured at a rate which is acceptable to distribution companies.

The CRISIL report had said: "Renewable energy capacity may increase by just 40 GW to 104 GW in 2022 from 64.4 GW in 2019, thanks to the lingering policy uncertainty and tariff glitches. That would be a good 42 per cent short of the government target of 175 GW." The report had noted that as much as 26 per cent of the 64 GW of projects auctioned by the Centre and the states have received no or lukewarm bids, while another 31 per cent are facing delays in allocation after being tendered. Thus, despite the increase in tendering volume, not only has allocation of projects slowed down, but both undersubscriptions and cancellations of awarded tenders have also increased, it had said.