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Renewable energy in India: lofty targets, shrinking expectations

Shares of wind power firms Inox Wind and Suzlon Energy have hit new lows in June

The government may exude confidence about exceeding its 2022 renewable energy capacity addition targets but stakeholders are lowering growth expectations.

Shares of wind energy equipment providers Inox Wind Ltd and Suzlon Energy Ltd hit new lows this month. A survey of project developers, contractors, equipment makers and financiers by Bridge to India, a consultant, points to an easing of growth expectations.

Tracking the strong capacity additions targets set by the government, most respondents expect their businesses to see strong growth by 2022. But the share of respondents who foresee rapid growth in their businesses has come down. In 2017, roughly one-third (32%) of respondents expected their business to grow more than five times by March 2022. This year, only one-fifth (21%) expect it to grow at that pace. A larger portion of respondents now expect their business to grow at a relatively slower pace of less than three times, and by between three and five times.