Covid-19 will lead to lower solar capacity additions in 2020-21, says ICRA

With Covid-19 pandemic impacting the supply chain as well as execution of projects, rating agency ICRA expects solar capacity addition in 2020-21 to be 15 per cent lower. It expects only 5.5 GW of new capacity to come up in 2020-21. Lockdown restrictions still exist in many states and labor unavailability has become a critical issue which is adding to the woes of developers who are already suffering from challenges like delays in land acquisition, receipt of evacuation approvals, regulatory delays in tariff adoption, and obtaining financial closure. All of these factors are likely to significantly impact new capacity additions.

Coronavirus outbreak, which has claimed thousands of lives across continents, has virtually brought the world economy to a standstill with millions of people placed under lockdown and global supply chains thrown into disarray.

As the pandemic rages on, renewable energy sector too is taking a hit. Factory shutdowns across the world, including in China have disrupted both upstream and downstream supply chains for wind turbines and solar panels, with consequences for clean energy progress this year around the world.But disruption in supply is only part of the equation. It is being feared that as policymakers and businesses focus on short-term stimulus packages to help the economy, energy infrastructure investments and planning will temporarily go by the wayside.

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