Mercom Capital Group has forecasted solar power installations across the globe to grow by 48% to reach 76 gigawatts (GW) by the end of 2016, but their growth will decline by 8% to 70GW in 2017. In contrast, the Indian solar market is expected to install more than 4GW this year and grow to almost 9GW in 2017.
According to Mercom’s India Cleantech Report, Japan and India will follow China and the US to become the third and fourth largest solar markets in 2017. Based on its current project pipeline, India has a chance to move up to the third spot by 2017, but Japan is expected to peak this year with 10.5GW. Reverse auctions and regulations are also expected to become the norm in April 2017, as Japan joins the rest of the world in moving toward auctions to reduce subsidy bills.
India is expected to install about 4.2GW this year and expected to double to 8.7GW in 2017, largely driven by auctions and a robust 20GW pipeline. Although there is a strong policy push from the central government, Mercom expects grid connection and curtailment issues to pop up in a few states. Financial condition of state utilities is a big concern as payment delays are a concern in some states.
Mercom feels next year will be crucial for India as it tries to install at levels that has not be done in the country before. Low power demand is becoming a challenge as solar ramps up. Power generation from renewable energy sources like solar and wind has increased to 7.54% of the total electricity generated in the country during April-September 2016.
Date: 29 November 2016 | Source: Mercom Capital Group