Budget 2018-19 WISH LIST

Key developments

New generation capacity addition this year came predominantly from non-carbon sources (over 80% from renewables, hydro and nuclear)

The main renewable energy sources, wind and solar, are now contracted solely via auctions. This has delivered record low tariffs (~2.44 per kWh for solar)

A road map was announced to procure about 110 Gw renewable energy, over coming months up to 2020. This pipeline of tenders offers a big growth opportunity for manufacturers, investors, and developers

New policies, from rural electrification to transport electrification, will reshape energy use and boost demand for electricity

Key issues

Lower margins in highly competitive auctions can deter new investments, while utilities may postpone signing new PPAs if tariffs go up. This Catch-22 situation can impair a healthy growth of the renewable energy industry

Transmission connectivity is a fast growing concern. Upcoming bids have fewer options of sub stations to which they can connect. That can drive up costs

Distribution utilities facing pressures of competition must invest in new technologies to reduce operating costs and cut losses

Stranded assets and underperforming assets need not only financial resolution but also structural and regulatory reforms