The Indian solar sector has remained buoyant amid the pandemic, with 15.3 GW of solar capacity approved in the first half itself. However, concerns are rising among India-focused investors.
From pv magazine India
Interest to invest in the Indian renewable energy sector remains strong despite the pandemic, but policy uncertainties and other evolving risks could dampen the flow of investments, according to a new report by the CEEW Centre for Energy Finance (CEEW-CEF) and the International Energy Agency (IEA).
India awarded 15.3 GW solar PV (including solar-wind hybrid capacity) in competitive bidding in the first half of 2020, which is almost equivalent to the capacity approved for development in all of 2019. The capacity boost was mainly driven by Adani Green Energy and Azure Power.
However, equity investor returns expectations rose from around 14% in the first half of 2019 to 16-17% over the second half of 2019 and the first half of this year. This suggests that risk perceptions are rising, the CEEW-CEF and IEA said.
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