India's renewable energy sector hit by weak demand, cancellations, report says

Business and Finance Business and Finance

Thu, March 6, 2025

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India's renewable energy sector hit by weak demand, cancellations, report says

^{Published on 2025-03-06 14:00:59 - Reuters}

India's renewable energy sector is facing obstacles including weak demand for tenders, power agreement delays and project cancellations, the Institute for Energy Economics and Financial Analysis said on Thursday.

The renewable energy sector in India is facing significant challenges due to weak demand and project cancellations, according to a report by JMK Research & Analytics. The report highlights that the sector has been impacted by a lack of new orders, with only 5.6 gigawatts (GW) of projects awarded in the last 12 months, a sharp decline from the 16.9 GW awarded in the previous year. This downturn is attributed to several factors including policy uncertainty, delays in project execution, and financial constraints. Additionally, the cancellation of projects, particularly in the solar segment, has been notable, with developers citing issues like land acquisition problems, grid connectivity delays, and regulatory hurdles. The report also notes that the situation is compounded by the global supply chain disruptions and rising costs of materials, which further strain the sector's growth prospects.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/energy/indias-renewable-energy-sector-hit-by-weak-demand-cancellations-report-says-2025-03-06/ ]

Contributing Sources

Reuters

N@N

India's renewable energy sector hit by weak demand, cancellations, report says