INDIA RE CEO SURVEY 2018 - Bridge To India
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INDIA RE CEO SURVEY 2018
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© BRIDGE TO INDIA, 2018
Introduction This is the third year of our CEO survey. And the survey is bigger than ever - we have got 44 responses covering full range of private sector stakeholders from India as well as abroad. Project developers EPC contractors Equipment manufacturers Financiers Notes: 1. Some company names are shown more than once in this table depending on range of their business activities 2. For multinational companies, the survey has been completed by respective heads of Indian business units. © BRIDGE TO INDIA, 2018 1
Respondents across the value chain
The survey participants are highly diversified by business profile and geography.
Financiers
4%
Equipment 35% 36%
Project
manufacturers
developers
25%
EPC
Respondents from across the globe
This year’s survey has an almost equal level of participation from Indian
and international players. Among the international players, we saw a greater
participation from German, Chinese and US companies.
International
45%
55%
India
© BRIDGE TO INDIA, 2018 2
Key findings
Industry outlook
3% 27% 52% 15% 3%
Not optimistic Balanced Optimistic Very optimistic Extremely
optimistic
Total capacity by March 2022
Solar power Rooftop solar power Wind power
66 GW 10 GW 52 GW
66% 25% 87%
of target of target of target
Bidding environment Ranking of states
Madhya Gujarat
Pradesh Andhra
Top 3 states for Pradesh
Irrationally utility scale
70% aggresive RE projects
Tamil Karnataka
Nadu Andhra
Top 3 states for Pradesh
Integrated manufacturing open access
capacity of modules by 2022 RE projects
Market growth
Industry outlook
Even with the threat of duties, Balanced
falling tariffs, weak power
demand and various policy
challenges, bulk of respondents
are optimistic about the industry
and its growth prospects.
Not optimistic 52%
27%
3%
15%
Very optimistic Optimistic
3%
Extremely optimistic
Solar capacity by March 2022
18% 61% 14% 7%
Sentiment regarding total solar
< 50 GW 50 - 75 GW 75 - 100 GW >100 GW
power capacity addition by March
2022 is in line with previous year.
Most respondents believe that
India will achieve total solar
capacity of 50-75 GW by 2022, a
little over 60% of the Government
of India’s target. 10% 48% 26% 16%
80 GW
CEO Survey
2017
Rooftop solar capacity by March 2022
60% of respondents expect total 21% 38% 24% 17%
rooftop solar capacity to be less < 8 GW 8 - 10 GW 10 - 14 GW >14 GW
than 10 GW by March 2022.
39% 22% 29% 10%
< 10 GW 10 - 15 GW 15 - 20 GW >20x GW
CEO Survey
2017
© BRIDGE TO INDIA, 2018 5
Wind power capacity by March 2022
Wind power has undergone a
compete paradigm shift in the
42% 45% 13%
< 50 GW 50 - 60 GW > 60 GW
last year by moving from
feed-in-tariffs to auctions.
Despite the resulting disruption,
58% of the industry believes that
India would achieve a total
capacity of over 50 GW by
March 2022.
Open access RE capacity by March 2022
Open access prospects seem 39% 42% 19%
largely unchanged from last year. < 6 GW 6 - 10 GW > 10 GW
Most respondents feel that India
will add about 6-10 GW of open
access power by March 2022.
14% 36% 36% 14%
< 3 GW 3 - 5 GW 5 - 10 GW >10 GW
CEO Survey
2017
Integrated solar module manufacturing capacity by March 2022
Notwithstanding the ongoing
safeguard duty investigation and
the government’s Make in India
28% 33% 27% 12%
push, the industry is pessimistic 1 - 3 GW 3 - 6 GW > 6 GW
None
about module manufacturing
prospects in India. 61% of the
respondents believe that India
will have less than 3 GW of
integrated manufacturing
capacity by March 2022.
Business growth by March 2022
Outlook for individual business
growth seems a little muted in 40% 40%
comparison to last year. Most 3x
16% 16%
5% 5x-10x >10x
>10x
CEO Survey
2017
© BRIDGE TO INDIA, 2018 6
Challenges facing the sector
Current bidding environment
Not surprisingly, more than 70% 3%
of respondents feel that the Balanced
current bidding environment is
irrationally aggressive, a view
maintained by BRIDGE TO INDIA
for some time now. Tariffs ought
to move up particularly in view of
the increasing tender issuance,
but it remains to be seen if 70% 27%
DISCOMs are willing to accept Irrationally Fairly
that. aggressive aggressive
Challenges in utility scale renewable energy market
The response on various Very challenging Not challenging Very challenging
operational challenges paints a
bleak picture. All factors are
assessed as challenging/ very
challenging. The three biggest
concerns are safeguard duty
threat, poor policy environment
and weak financial condition of
DISCOMs.
Storage market challenges
Storage has been talked about
as a vital component of clean
energy grid, but it is yet to find
acceptance in India. The
industry feels that high cost,
lack of awareness and enabling 33%
Lack of techo-commercial
policy environment (in that understanding
order) are restricting the
growth of this market.
32%
Lack of enabling
policy environment
35%
High Cost
© BRIDGE TO INDIA, 2018 7State rankings
Ease of doing business for utility scale projects
Gujarat (followed by Madhya Very good
Paradesh and Andhra Pradesh)
Uttar Pradesh
tops ratings for the most
Maharashtra
Tamil Nadu
favourable state for policy
Haryana
framework (clarity and visibility),
land acquisition, transmission
capacity, permits and approval Fair
Rajastahan
Telangana
process. The three worst states
Andhra Pradesh
Gujarat
Karnataka
Madhya Paradesh
Punjab
on these combined parameters
are Maharashtra, Tamil Nadu
and Haryana.
Very poor
Attractiveness for open access RE projects
Karnataka is understandably the Very good
overwhelming favourite for open
Uttar Pradesh
access projects because of its
Maharashtra
Rajastahan
very attractive policy and ease of
Telangana
Haryana
getting approvals. It is followed
Gujarat
by Andhra Pradesh and Tamil Punjab
Nadu. The bottom three states Fair
are Rajasthan, Maharashtra and
Tamil Nadu
Andhra Pradesh
Karnataka
Madhya Paradesh
Gujarat.
Very poor
Attractiveness for rooftop solar projects
Madhya Pradesh, Maharashtra Very good
and Haryana are the most
preferred states for rooftop solar.
Less enthusiasm for Tamil Nadu,
Tamil Nadu
Punjab and Uttar Pradesh.
Fair
Rajastahan
Telangana
Andhra Pradesh
Gujarat
Haryana
Karnataka
Madhya Paradesh
Maharashtra
Punjab
Uttar Pradesh
Very poor
© BRIDGE TO INDIA, 2018 8You can also read
