CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

India to add 16GW renewable power output capacity in FY23

By Anoop Agrawal

09:28, 10 January 2022

A solar and wind power farm
Photo – Shutterstock

Rating agency ICRA estimates India will add renewable energy generating capacity of 12.5 gigawatt (GW) in the year ended March 2022 and another 16GW in the year thereafter amid ongoing project pipelines of up to 55GW.

“The backlog of the projects awarded by the federal nodal agencies and state distribution utilities remains large with under-development solar, wind and hybrid capacities of more than 55GW. Basis [sic] this pipeline, ICRA expects the RE capacity addition to increase,” said Girishkumar Kadam, senior vice president and co-group head for corporate ratings at ICRA.

Kadam added that the capacity additions will also be boosted by the increased number of power purchase agreements finalised in the past six months by the Solar Energy Corporation of India. Within the renewable energy capacity, the additions will be driven by the solar segment followed by the wind and hybrid segments.

Competitive tariffs

ICRA said the outlook for the capacity addition in the renewable energy sector also remains strong because of the competitive tariffs offered by these projects.

“The commitment to climate change goals announced by the Prime Minister at the recent COP26 summit, including increasing the non-fossil power capacity to 500 GW and meeting 50% of energy requirement from renewable sources by 2030, further strengthen the investment prospects in the renewable energy sector,” the ICRA statement said.

In the first eight months of the current financial year ended November 2021, India added 8.2GW of renewable energy generation capacity, compared to 3.4GW added in eight months of FY2021.

Risks still to face

While there are green shoots, ICRA also pointed out some risks. It said the generation capacity addition faces risks coming typically from challenges in project executions and supply chain challenges for procuring key equipment like modules and wind turbine generators.


14,557.80 Price
+0.640% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 3.0

Oil - Crude

71.98 Price
+2.450% 1D Chg, %
Long position overnight fee -0.0201%
Short position overnight fee -0.0018%
Overnight fee time 21:00 (UTC)
Spread 0.04


27,251.75 Price
+0.580% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 60.00


0.54 Price
+3.390% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.00540

At the same time, the average price of imported solar photo voltaic modules have surged by more than 35% over the past 12 months, adding pressure on capital costs for solar power projects.

ICRA noted that the ability of the developers to produce modules within their costs and the cost of debt funding with interest rates of less than 8.5% remains important to make these projects viable.

The wind segment continues to witness subdued capacity addition owing to execution headwinds, financing challenges for several developers and a weak financial profile of some of the generators.

ICRA anticipates investments towards renewable power transmission infrastructure and storage capabilities to be about $150–200bn (£110–£147bn) over the next eight and a half years, taking the overall investment requirement to $450–500bn. “The availability of adequate funding avenues at cost competitive rates remains critical to achieve these capacity targets,” the rating agency added.

Read more: India’s Equitas Holdings to divest freight booking business 


Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading