As per recent reports, renewable energy generation saw a decline of …% in the month of August 2019 as compared from July 2019. One of the major reasons for the decline is the variations in the weather. A very known fact in the industry is that during the months of June to August the RE generation (wind & solar) takes a dip. As the wind speeds are affected & the sun takes a mini-vacation, the efficiency of the RE plants reduces.
What is interesting to observe is that despite the low generation, the overall installed capacity has increased in the past year.
The reason for the decline in RE generation is wavering weather conditions affecting the wind speeds & curtailment seen in the past months in the southern states of the country. States like Andhra Pradesh, Karnataka & Tamil Nadu have a higher share of installed capacity compared to the rest of the country. The states generally realign their purchases during such low demand periods during monsoons, leading to underutilization of thermal power as well.
But the impact on renewable energy plants is more due to inadequate integration power coming from renewable energy plants.
Another reason for this sharp fall is the reduced offtake of power by certain states pertaining to the losses incurred by the state discoms, due to which the discoms can’t break even. Issues like power curtailment and no power offtake are also harming the investment sentiment in the market.
Going forward, the country and states individually need to come up with better policy implementation in order to achieve 175 GW target set under the National mission by 2022 to curb climate change, improve electricty sector at a greater level and introduce renewable energy into the grid while maintaining the grid stability in the future. Currently the payment delay, tariff re-negotiations have affected the credit ratings, increased the finances and limited returns overall reducing the competitiveness of the renewable energy sector which was once thriving.