The current COVID-19 crisis is expected to continue hindering the wind energy industry in India such that prices for wind turbines will increase hugely, according to GlobalData.
However, the industry is only expected to start experiencing recovery from the end of the second quarter of 2020.
Prices for wind turbines are expected to increase by 10% in the second quarter of 2020, in comparison to Q2 prices estimated before the outbreak.
The lack of production and importation of wind turbine equipment into India is expected to drive the costs for turbines to $864/KW to $904/KW in the first quarter of 2020 and $943/KW in the second quarter of 2020.
Factors negatively impacting on the country’s wind sector include the slowdown in commercial activities, the extension of the lockdown and significant downtimes being faced by manufacturers.
The recovery of international markets including in the US, Germany, Denmark and China is expected to positively impact on India’s local market such that prices for wind turbines will decrease to $923/KW and $902KW during the third and fourth of 2020, respectively.
The energy transition and renewable energy are hot topics disrupting the utility industry in India and will be a key focus at the POWERGEN INDIA and Indian Utility Week summit which takes place in New Delhi.
For more details visit powergen-india.com or indian-utility-week.com
Somik Das, a senior power analyst at GlobalData, said: “To support the government’s efforts, companies such as Vestas, Siemens Gamesa and Inox Wind have halted activities across all their plants in India, which has been a viable alternative to China and Spain. Lack of production is expected to create disruptions in supply, with significant consequences on the global market.
“Probable delays of wind auctions and tenders will certainly impact the recovery rates of turbine manufacturing plants in India. The ongoing pandemic is an evolving issue and a shortfall in manufacturing capacity will affect the country’s push for wind deployment. Until a balance between supply and demand is achieved, manufacturers in India are expected to face a tough phase with substantial downside risk.”