The sale of electric vehicles (EVs) increased by 20% up to 156000 units in financial year (FY) 2019-20
The lockdown has created a compression in power demand and is estimated to result in liquidity crunch of approximately Rs.50,000 crore
For DISCOMS total power consumption in the country has fallen to 125 GW at the start of April, 2020, as compared to 163 GW
We are more than a month into the nation-wide lockdown in the country and a lot of developments have taken place in the clean energy sector. Following are the developments in renewable energy in India during the ongoing COVID-19 lockdown:
India Witnesses Rise in EV Sales in Fiscal 2020
The sale of electric vehicles (EVs) increased by 20% up to 156000 units in financial year (FY) 2019-20. As per the data received from industry body Society of Manufacturers of Electric Vehicles (SMEV), EV sales included 156,000 two-wheelers, 3400 cars and 600 buses. The significant increase in two-wheeler sales only confirms two-wheelers to be the low hanging fruit in initiating the clean mobility transition in the country. Number of electric or e-rickshaws sold last year were 90,000 units.
NHPC Floats Auction for 2 GW of Grid-linked Solar Projects
The National Hydro Power Corporation (NHPC), recently organized an e-reverse auction for 2 GW grid-connected solar power projects. The auction was underway on 16 April, 2020 for solar photovoltaic projects slated to be established anywhere in the country.
DISCOMS to Go Through Severe Cash Crunch and Revenue Loss Due to Lockdown
According to CII (Confederation of Indian Industry), state owned electricity DISCOMS (distribution companies) that were already in debt before the COVID crisis, are pegged to undergo a revenue loss of close to Rs. 30,000 crore and a liquidity crunch of Rs.50,000 crore due to the SARS n-CoV19 induced lockdown. It is common knowledge that DISCOMS are in debt and have been for a while now. As on February, 2020, DISCOMS owe Gencos (generation companies) Rs.92,602 crore. The lockdown has created a compression in power demand and is estimated to result in liquidity crunch of approximately Rs.50,000 crore for DISCOMS.
Power Sector Under Strain: Huge Losses and Liquidity Crunch in the Offing
Peak power demand had reduced by 25% since the beginning of the COVID induced lockdown. According to data from the power ministry, total power consumption in the country has fallen to 125 GW at the start of April, 2020, as compared to 163 GW before the shelter at home order came into effect. This liquidity crunch will affect all players in the power sector’s value chain, Gencos (conventional and renewable), transmission licensees and vendors in the industry. This will affect their ability to buy fuel, mitigate debt and ensure seamless operations.
MNRE to Promote Local Manufacturing for Renewable Energy
The renewable industry is heavily dependent on imports for raw materials. In a move to reduce this dependence, the Ministry of New and Renewable Energy (MNRE) has requested state and port authorities to earmark viable sites for renewable manufacturing activities. All states are requested to identify land of 50 to 500 acres for setting up renewable energy manufacturing and export services hub.
Revised Guidelines Allows Construction of Renewable Projects During Lockdown
The Indian Government allowed resumption of construction of renewable energy projects in its revised guidelines for the COVID19 lockdown that was extended till May 3rd, 2020. Oil and gas exploration and refinery will be allowed to operate as well. These guidelines don’t apply to containment zones in the country. However, renewable energy companies might not start construction post April 20 due to various shortages in manpower and other resources.
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