India could see 3,000 megawatts (MW) of solar photovoltaic (PV) and wind installations delayed this year as a result of the country’s lockdown to contain the spread of Covid-19.
Analysts at Wood Mackenzie said on Monday that deployment could fall by 21.6%, with projects delayed until summer or even into the monsoon season, Kallanish Energy reports.
“The timing of the lockdown is unfortunate as Q1 is typically one of the busiest periods for wind project installations,” said principal analyst Robert Liew. “If the lockdown is extended past April, wind farm construction could be further delayed into the monsoon season, where wind installations are typically at their lowest.”
There are over 3,000 MW of wind capacity planned to start this year in India. However, supply and labor disruptions due to the travel restrictions could postpone 400 MW into next year, leading to a downgrade of 11% for 2020.
Solar PV installations are expected to be “hit hard,” Wood Mackenzie warns, as the industry is heavily dependent on Chinese PV module imports. It currently imports around 80% from China, which has seen supply disrupted due to the pandemic.
A large negative impact is expected in solar PV deployment in Q1, with a potential 60% year-on-year quarterly downgrade, or 1,200 MW, down from about 3,000 MW in Q1 2019.
“We remain cautious on the outlook for the second half of the year as supply and logistics bottlenecks linger,” warned senior analyst Rishab Shrestha.
The installation decline this year is estimated at 2,900 MW, which is a 24.8% reduction of the previous 2020 outlook, which is now forecast at 8,900 MW.
This post appeared first on Kallanish Energy News.