India could face over 21.6 per cent of 3 gigawatts (GW) of solar power and wind energy projects being delayed due to the nationwide lockdown imposed to check the spread of coronavirus, Wood Mackenzie said in a report.
While wind projects would be hit by supply and labour disruptions in the peak season, solar photovoltaic (PV) installations are expected to be hit hard as the industry is heavily dependent on Chinese PV module imports, which have been disrupted due to coronavirus.
“Wood Mackenzie projects that India could face over 21.6 per cent or 3 gigawatts (GW) of solar photovoltaic (PV) and wind installations being delayed as a result of the country’s lockdown,” it said in the report.
Wood Mackenzie principal analyst Robert Liew said: “The timing of the lockdown is unfortunate as Q1 is typically one of the busiest periods for wind project installations. The lockdown will delay some projects until summer, and 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”.
With over 3 GW of wind projects under construction scheduled for 2020 completion, supply and labour disruptions from the current lockdown could delay 400 megawatts (MW) into 2021, equating to a downgrade of 11 per cent for 2020.
Similar to the wind sector, India’s solar PV installations is expected to be hit hard as the industry is heavily dependent on Chinese PV module imports (80 per cent of total volume) which has been disrupted due to the coronavirus.
“Current supply and labour disruptions will have an outsized negative impact on 2020 installations. Q1 is expected to be strongly impacted with a potential 60 per cent year-on-year quarterly downgrade, or 1.2 GW, down from about 3 GW in Q1 2019.