India saw 4,578 mw (around 4.6 GW) of new solar power generation capacity in the first half (January to June) of 2021, according to a recent report by Mercom.
This addition was more than three times the comparable 1,296 mw added in the same period of 2020.
As of June 30, 2021, India’s cumulative solar capacity reached 43.6 GW, Mercom said.
Mercom also observed that solar capacity additions in the second quarter (April to June) of 2021, at 2,488 mw, were 19 per cent higher than the 2,090 mw in the immediately preceding January-March quarter of 2021.
“Installations were significantly higher than the previous quarter despite various state level lockdowns because of the second wave of COVID. The lockdowns were very targeted, and the industry was well-prepared this time around, which minimized the effect on solar projects,” Mercom said.
“Even with a strong quarter, the industry continues to battle uncertainties around higher component costs and logistical issues. With duties and import restrictions, purchasing quality solar components at the best price will be the biggest challenge for the industry going forward as solar system costs ticked up for the fourth quarter in a row,” said Raj Prabhu, CEO of Mercom Capital Group. “The demand for building large-scale projects is extremely high, while auctions have slowed down. The government focus has shifted towards building domestic manufacturing capacities.”
Mercom has forecast solar capacity addition in 2021 to be in the range of 8-9 GW. The large-scale solar project pipeline in India stands at 52.8 GW, with 28 GW tendered and pending auctions, as of June 30, 2021, observed Mercom.
(Note: The solar capacity discussed in this story includes both rooftop and utility-scale installations.)
Featured photograph (source: ENGIE) is for illustration only
