Buoyed by the sharp increase in solar power capacity addition in FY2015–2016, the Indian Government has set ambitious capacity addition targets for FY2016–2017 as well.
The Ministry of New and Renewable Energy (MNRE) communicated the targets for the coming financial year in the annual union budget proposal tabled in the Parliament on 29 February. MNRE plans to add 12 GW of solar power capacity between April 2016 and March 2017. This is a massive target when compared to the target set for FY2015–2016 of just 1.4 GW.
The new target is higher than the earlier estimates of the MNRE. In October, a document released by the ministry suggested that around 10.8 GW of solar power capacity could be added in FY2016–2017. The Ministry estimated that a total of 9,244 MW solar power capacity may be added under the central government policies, while 1,615 MW capacity may be added under the state solar power policies.
For FY2015–2016, the solar power capacity addition target has been set at 1,400 MW, with 1,489 MW capacity having already been added by 31 January 2016. The ministry expected to add 4.3 GW capacity in FY2015–2016 so any shortfall may see installation in FY2016-17, and thus the increase target.
Wind energy capacity addition target for FY2016–2017 has been set at 4.1 GW, compared to 2.4 GW in FY2015–2016. Some may call the target to be ambitious, especially since the government is set to limit a crucial financial incentive for wind energy project developers.
Against the wind energy target of 2.4 GW in FY2015–2016 just 1.7 GW was added until 31 January 2016. However, there remains a healthy pipeline of projects under developments across the various states.