COVID-19 IInd Wave Fallout – Solar & Wind Projects Get Further Delayed

In Renewable Energy, Clean Facts, News, Sustainability
COVID-19

The recent surge in COVID-19 cases across the country has pushed several states under curfews and lockdowns, which is expected to result in project commissioning delays for solar projects, according to industry analysts.

JMK Research

According to JMK Research, if the government grants solar developers another three to four month extension, an estimated 4 gigawatt (GW) of solar and wind projects with planned commissioning in 2021 will be delayed and will be expected to get commissioned in 2022.

Solar developers have already asked for a three to four month blanket extension from the Ministry of New and Renewable Energy (MNRE) owing to disruptions in labor and supply chain as a result of the ongoing wave of COVID-19 infections.
COVID-19

The ministry had clarified through an order issued on 30 March that the total extension provided by implementing agencies on account of Covid-19 should in no case be more than 6 months including the 5-month blanket extension given in August 2020.

In case an extension beyond 6-months is required, the agency will have to justify it to MNRE.

The situation is really grim and significantly worse than last year… The conservative view is that the slowdown will amount to a loss of 3-4 months of business activity.

Profitability across the value chain is also coming under severe pressure due to additional costs and delays as per the consultancy firm Bridge to India.

Reference- Bridge to India, Institute for Energy Economics and Financial Analysis (IEEFA), JMK Research, MNRE

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