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Power Transmission in India Outlook Update Q1 2020

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Report Summary COVID 2019 outbreak in China to hit equipment supplies to RE sector in India – Cascading effect on power transmission industry expected in Q1 2020

Power Transmission in India Outlook Update Q1 2020

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    In CY 2019 the capacity additions pace for renewable sector in the country was low as compared to erstwhile year-on-year capacities being added from CY 2014. Multiple factors were responsible for the slow capacity addition pace with the foremost being the tapered investments due to inconsistent pay back from the distribution companies and uncertainties to PPAs executed. Also, being the election year the Government push was missing and therefore the capacities are expected to register a fillip in the current CY 2020. However, amidst force majeure circumstances witnessed from COVID 2019 outbreak in China, the supplies to Indian solar industry has halted completely and with uncertainty in future the situation for capacities look grim. This for sure shall have a cascading impact upon the capacity additions in power transmission segment. The dedicated infrastructure for transmission of RE energy shall therefore have reduced pace at least for first two quarters in CY 2020.
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