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<keyword id="6355588" type="ORGANIZATION" weightage="100" keywordseo="Rajasthan">Rajasthan</keyword>, the desert state of India, emerged as the most attractive solar project destination in the country during the latest NTPC auction, which saw the winning bids falling to Rs 4.35-4.36 per kwH. 
 
There were 130 MW put up for auction, out of which 50 MW was won by Shapoorji Pallonji Infrastructure Capital and 60 MW by Mahindra Susten, while the remaining 20 MW was won by Prayatna Developers of the Adani Group. Both these companies offered to sell electricity produced from their projects at same price of Rs 4.35 per kwH, and Prayatna Developers’ offer was at Rs 4.36 per kwH. 
 
Also read: <a href="http://www.businessinsider.in/india-solar-power-tariff/articleshow/53115610.cms">Here’s why India can never afford solar power at Rs 2.2 per unit, but Dubai can</a> 
 
These reverse auctions see the developer offering to sell electricity at the lowest price winning the auction. The last NTPC auction in Rajasthan saw Fortum Finnsurya winning a 70 MW project by bidding Rs 4.34 per kwH. However, in that auction, the land for the project was ensured at the Bhadla Solar Park in Jodhpur district, with the highest solar radiation in India. 
 
This time around, the winners are not being given any land. Instead, developers will find and develop the land themselves, probably the reason behind marginally higher tariffs. 
 
Also read: <a href="http://www.businessinsider.in/World-Bank-to-lend-1-billion-to-India/articleshow/52988966.cms">World Bank will lend India $1 billion for Modi's solar goals</a> 
 
This year has not seen too many developers taking interest in these auctions, with the Gujarat auction of 160 MW of capacity, which was held in late-June, drawing only three bidders. However, in the latest Rajasthan auction, the developers seem to have shed those apprehensions with 21 developers, including many of the top names in the business, taking part in it. 
 
Also read: <a href="http://www.businessinsider.in/renewable-energy-projects-finance/articleshow/52741905.cms">Your renewable energy projects could get easily financed and that too at low interest rates</a> 
 
The reason could be cited to Rajasthan's inherent solar advantage, because of the high radiation that the state receives. The developers’ interest in this recent auction also shows that along with tariff, it also crucially depends on the project locations. 
 
<a href="http://www.eai.in/wp-content/uploads/2012/07/100_1759.jpg">Image source</a>

Rajasthan shines as India's most attractive solar project destination in NTPC auction

<ul><li>The central <keyword id="26362" type="ORGANIZATION" weightage="20" keywordseo="Government">government</keyword> has instructed the <keyword id="1937268" type="ORGANIZATION" weightage="20" keywordseo="Solar-Energy-Corporation-of-India">Solar Energy Corporation of India</keyword> (SECI) to release a tender to add 1,000 MW of solar energy capacity every month from November 2018 to February 2019 in order to meet its targets. </li><li>The tenders, if successfully bid for by developers, will add 4,000 MW to the already existing capacity of 25,000 MW in <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>. </li><li>As a result of the muted response to previous auctions, SECI will incentivise developers to bid by increasing <keyword id="6357464" type="UNKNOWN" weightage="20" keywordseo="tariff">tariff</keyword> rates and extending project timelines. </li></ul>As it heads into election year, the central government is wary of underperforming on its solar energy mandate. As a result, it has instructed the Solar Energy Corporation of India (SECI), a company housed under the Ministry of New and <keyword id="34553" type="ORGANIZATION" weightage="20" keywordseo="renewable-energy">Renewable Energy</keyword> to facilitate the government’s solar energy projects, to release a tender to add 1,000 MW of solar energy capacity every month from November 2018 to February 2019, according <a href="https://indianexpress.com/article/business/business-others/govt-asks-solar-energy-corp-to-bring-tenders-of-4000-mw-5452661/">to the Indian Express</a>. The tenders, if successfully bid for by developers, will add 4,000 MW to the already existing capacity of 25,000 MW in India. However, going by <a href="https://energy.economictimes.indiatimes.com/news/renewable/developers-still-reluctant-to-bid-for-solar-power-assets/66687042">the muted reaction</a> to recent manufacturing-linked tenders, it remains to be seen if anyone will bid for them. Why is the interest in these tenders waning? It seems that the lack of certainty regarding the demand for solar energy doesn’t justify the investment required. In June 2015, the Indian government announced that it planned to add <a href="https://www.business-standard.com/article/economy-policy/cabinet-revises-solar-power-target-to-1-lakh-mw-by-2022-115061700668_1.html">100,000 MW</a> of solar energy capacity by 2022. What seemed an ambitious target at the time became a lot more realistic over the next few years as a number of solar power projects were commissioned and India undertook the stewardship of <a href="https://unfccc.int/news/international-solar-energy-alliance-launched-at-cop21">the International Solar Alliance</a>. However, in the last year, there has been a significant slowdown in the solar energy sector. Imports of solar panels from China, which are used in 80% of solar power projects in India, have been getting more expensive because of the falling rupee and a reduction in subsidies from the Chinese government to the solar energy sector. Funding from banks has also dried up as the sector becomes less of a safe bet. All that means is the upcoming auctions will be crucial to get India’s solar energy ambitions back on track. And SECI knows that it has to adequately incentivise developers to bid. It has, therefore, <a href="https://economictimes.indiatimes.com/industry/energy/power/terms-of-10-gw-solar-tender-unlikely-to-be-relaxed/articleshow/66628663.cms">increased the tariff rates</a> for solar energy developers to sell their products to distribution companies. It has also extended timelines for the implementation of projects. If the next few tenders fail to attract sufficient bids, it might have to do away with the process of capping tariff rates entirely and even permanently relax <a href="https://www.thehindu.com/business/Industry/centre-imposes-25-safeguard-duty-on-import-of-solar-cells/article24565771.ece">the 25% duty imposed</a> on imports of Chinese solar panels and modules. SEE ALSO: <a href="https://www.businessinsider.in/softbanks-ceo-pledges-to-give-india-and-other-solar-alliance-members-free-power-in-25-years/articleshow/66065755.cms">Softbank's CEO pledges to give India and other solar alliance members free power in 25 years</a> <a href="https://www.businessinsider.in/if-indias-solar-energy-is-cheaper-than-coal-why-isnt-the-industry-thriving/articleshow/65605221.cms">If India’s solar energy is cheaper than coal, why isn’t the industry thriving?</a> <a href="https://www.businessinsider.in/india-needs-to-support-domestic-manufacturers-in-order-to-achieve-its-solar-energy-targets/articleshow/63280197.cms">India needs to support domestic manufacturers in order to achieve its solar energy targets</a>

India may have a tough time meeting its solar energy capacity targets as developers steer clear of government auctions

<keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>'s biggest floating <keyword id="59444" type="ORGANIZATION" weightage="20" keywordseo="Solar-power-plant">solar power plant</keyword> with a capacity of 100 megawatt is expected to become operational in <keyword id="68884" type="LOCATION" weightage="20" keywordseo="Telangana">Telangana</keyword> next month. The project has been set up by the energy conglomerate National Thermal Power Corporation (NTPC) in the reservoir of its thermal power plant at Ramagundam, Peddapalli district. The solar photo-voltaic project, spread over 450 acres, will have 4.5 lakh photovoltaic panels and it can be expanded in the future According to C.V. Anand, Executive Director, <keyword id="10904332" type="COMPANY" weightage="20" keywordseo="ntpc-southern-region">NTPC Southern Region</keyword>, this will be the largest floating solar plant in the country in a single location as of now. The project has been set up at a cost of ₹423 crore. The Maharatna company plans to set up solar projects across all thermal power plants in the country. The NTPC plans solar power plants of the total capacity of 450 MW in the southern region. Of this, 217 MW plants would be floating on water bodies. The corporation is also setting up 92 MW floating unit at Kayamkulam gas plant in Kerala and a 25 MW unit at Simhadri power plant in Visakhapatnam. The NTPC embarked on setting up large floating solar plants after successfully completing pilot projects at Kayamkulam (100 KWH) in Kerala and Kawas (1 MW) in Gujarat. Officials say the solar powers project are in line with the country's commitment to attain the target of 175 GW of installed renewable energy capacity by 2022 including 100 GW of solar installed capacity. The upcoming floating solar plants in South India are likely to be commissioned in next few months. The Covid-19 pandemic has led to the delay in construction of the new projects. Under the floating plants, the photovoltaic panels are deployed on the surface of water bodies. They are considered as a viable alternative to land-based solar arrays. NTPC officials explain that setting up floating solar units on water bodies and huge reservoirs help them in cutting down on the costs. Floating solar units prove to be cost effective when compared to ground-mounted plant. As South India has a large number of major reservoirs, NTPC Southern Region plans to focus on floating solar plants. The company officials say they prefer solar floating plants due to their advantages. As five acres of land is required for setting up one MW solar photo-voltaic plant on <keyword id="6375548" type="UNKNOWN" weightage="20" keywordseo="Ground">ground</keyword> and given the challenges in land acquisitions, the authorities are going for floating method. There are other advantages of the floating plants. As water bodies exert a cooling effect, this improves the performance of solar photovoltaic panels by 5 to 10 per cent. This means a significant cost saving for the plant owners. The other benefits include reduced water evaporation, reduced grid interconnection costs, low algal blooming and improved water quality. Interestingly, the world's largest floating 600 MW solar energy project is also coming up in India. The project to be constructed at Omkareshwar dam on the Narmada river in Khandwa district, Madhya Pradesh, is likely to begin power generation by 2022-23. Electricity will be produced in about 2,000-hectare water area by installing solar panels in the dam. Solar panels will float on the surface of the water in the reservoir. The floating solar power project at Ramagundam is expected to give boost to share of renewable energy in overall power generation in Telangana. The total installed capacity of renewable energy, including solar, in Telangana stood at 3,944 MW in 2019-20. Telangana is among a handful of States and Union territories who are on track to meet their renewable energy targets for 2022. The solar power projects by NTPC in the southern region include 5 MW unit set up at Port Blair Solar in Andaman and Nicobar Islands in 2012, a 10 MW solar plant at Ramagundam in 2013 and the phase I- of the 250 MW (5X50 MW) Ultra Mega solar project commissioned at NP Kunta village of Anantapur district in Andhra Pradesh. The NTPC is also working on 230 MW ground mounted solar power plant in Ettayapuram near Tuticorin in <keyword id="20154" type="LOCATION" weightage="20" keywordseo="tamil-nadu">Tamil Nadu</keyword>. This is expected to be commissioned by next year. The solar power projects are part of NTPC's plans to reduce its carbon footprints and accelerate its green energy production to 30 per cent of its capacity. NTPC Southern region has total installed capacity of about 9,125 MW, out of the corporation's total capacity of 64,880 MW in the country. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/upi-crosses-5-lakh-crore-in-transaction-value-in-march/articleshow/81820799.cms">India’s digital payments soar – UPI crosses ₹5 lakh crore in transaction value in March</a> <a href="https://www.businessinsider.in/india/news/west-bengal-is-the-highest-contributor-to-small-savings-schemes/articleshow/81825902.cms">West Bengal is the highest contributor to small savings schemes – with elections underway, it could have been a trigger for the government to roll back interest rate cuts</a> <a href="https://www.businessinsider.in/business/startups/news/revolut-india-plan-starts-with-a-25-million-investment-and-possibly-a-fintech-acquisition/articleshow/81833983.cms">Revolut’s India plan starts with a $25 million investment and possibly, a fintech acquisition</a>

India's biggest floating solar power plant coming up in Telangana

<ul><li>In January, the government proposed a 70% safeguard duty on solar equipment from <keyword id="1334" type="COUNTRY" weightage="20" keywordseo="China">China</keyword> and Malaysia. </li><li>This was in response to concerns from domestic manufacturers that these <keyword id="35091" type="CITY" weightage="20" keywordseo="imports">imports</keyword> were biting into their sales. </li><li>However, the government decided against the duty, given that <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>’s continued progress in solar production depends on these cheap imports. </li></ul> India’s <keyword id="70990" type="ORGANIZATION" weightage="20" keywordseo="Solar-power">solar power</keyword> producers can rejoice. The government has decided against levying a 70% duty on imports of solar cells and modules from countries like China and Malaysia. An official from the Ministry of <keyword id="34553" type="ORGANIZATION" weightage="20" keywordseo="renewable-energy">Renewable Energy</keyword>, Anand Kumar, confirmed to the Economic Times that there wouldn’t be any “provisional safeguard duty”. A safeguard duty is usually imposed on a product for a short period of time in the event that imports of the product have increased at a rate that hurts domestic producers of the same good. India’s imports of solar cells and modules, most of which came from China, rose by 43% in 2017. In January, the government proposed a 70% safeguard duty on solar equipment from China and Malaysia, in response to concerns from domestic manufacturers of solar cells that these imports were biting into their sales. However, domestic developers of solar power projects did not take kindly to the proposal. They argued that the duty would increase their costs significantly and lead to cancellations and delays in their projects. This led to a petition in the Delhi High Court against the duty by Acme Solar, an Indian energy company. The petition was recently withdrawn following the a decision by a government committee on safeguards against imposing the duty. Import dependence In line with a goal to achieve 100 gigawatts of solar capacity by 2022, India’s domestic solar power capacity has skyrocketed in recent years. According to data from the Central Electricity Authority, India had 69 gigawatts of renewable energy capacity at the end of March 2018 out of which nearly 21.7 gigawatts came from solar energy alone. This represents more than a tripling in production since March 2016. This growth has, however, come on the back of cheap imports of solar power equipment from these countries, which comprise over 80% of the equipment used in domestic power projects. These cheap inputs have helped keep solar energy prices low. As I mentioned in an earlier piece in March, India simply lacks the domestic manufacturing capacity to support these projects. Indian solar cell manufacturers do not have the technology to cover cost and supply chain efficiencies required to match the prices of their Chinese and Malaysian competitors. Hence, in deciding against the 70% duty, the government has effectively realised that it can’t meet its solar energy production targets without Chinese imports. Not unless it implements a number of measures to build the capacity of its domestic manufacturers.

India’s government decides against levying duties on solar equipment imports

<ul><li>A report from Deloitte and Climate Investment Funds states that lack of low-cost financing is a major hurdle in <keyword id="6393272" type="UNKNOWN" weightage="20" keywordseo="MSMEs">MSMEs</keyword> adding rooftop <keyword id="70990" type="ORGANIZATION" weightage="20" keywordseo="Solar-power">solar power</keyword> projects. </li><li>In India, the <keyword id="3141044" type="PERSON" weightage="20" keywordseo="rooftop-solar-capacity">rooftop solar capacity</keyword> stood at 3.3GW in September 2018 while it aims to have 40 GW by 2022. </li></ul>India has set high targets for itself – to achieve 40 GW of rooftop solar capacity by 2022 and 100 GW of solar power by the same year. The Indian MSME sector could be instrumental in achieving this target but there are multiple challenges that the government needs to address first, according to a report by Deloitte and Climate Investment Funds (CIF). The report states that involving MSMEs “requires addressing issues related to lack of low-cost financing, inadequate level of awareness, and lack of rooftop aggregation models”. India still has a long way to go in achieving its rooftop solar capacity target. According to a <a href="https://bridgetoindia.com/report/india-solar-rooftop-market-i-january-2019/">report </a>by Bridge to India, the rooftop solar capacity stood at 3.3 GW by September 2018. The report further predicts that the total capacity addition will be 18.8 GW in the next five years, which still doesn’t meet India’s target. Rooftop solar is important because it can be used for residential and commercial properties, making way for local utilization. So far, India’s rooftop solar projects have been mainly run by corporates but in order to scale up the capacity, MSMEs will have to be involved in the process. <keyword id="6357455" type="UNKNOWN" weightage="20" keywordseo="Funding">Funding</keyword> will be key for growing rooftop solar capacity for MSMEs. According to a report by Climate Policy Initiative, MSMEs, “do not have high enough credit ratings to access finance under the two prevailing rooftop solar business models, the Capital Expenditure model and the Power Purchase Agreement model.” So for them to step up in the solar race, the government needs to intervene. The Deloitte report also suggested that the government needs to create a dedicated scheme “such as interest subvention and the Partial Risk Guarantee Fund mechanism”, with a proper budget allocation that can be the fuel for pilot projects in MSMEs. See Also: <a href="https://www.businessinsider.in/interim-budget-2019-the-state-of-indias-solar-power-is-a-matter-of-concern/articleshow/67622437.cms">India’s solar power producers are awaiting a ray of hope</a> <a href="https://www.businessinsider.in/iredas-ipo-is-likely-to-be-delayed-again/articleshow/67888133.cms">India's Renewable Energy Development Agency IPO may be delayed again</a>

India will not meet its rooftop solar power target if it doesn’t help MSMEs

<keyword id="3658" type="General" weightage="100" keywordseo="india" source="Orion">India</keyword> is projected to fall "well short" of its target for 2022 of having 100 gigawatts (GW) of installed solar capacity, largely due to slow uptake of rooftop solar, a new report by JMK Research and the Institute for Energy Economics and Financial Analysis (IEEFA) said on Tuesday. As of December 2021, India's cumulative installed solar capacity was 55GW, with grid-connected utility-scale projects contributing 77 per cent and the balance coming from grid-connected rooftop solar (20 per cent) and mini or micro off-grid projects (three per cent). With just eight months of 2022 remaining, only about 50 per cent of the 100GW target, consisting of 60GW of utility-scale and 40GW of rooftop solar capacity, has been met. Approximately 19GW of solar capacity is expected to be added in 2022 -- 15.8GW from utility-scale and 3.5GW from rooftop solar. "Even with this capacity addition, about 27 per cent of India's 100GW solar target would be unmet," says report co-author <keyword id="5005000" type="General" weightage="50" keywordseo="jyoti-gulia" source="Orion">Jyoti Gulia</keyword>, Founder, JMK Research. The report projects that by December 2022 there will be a 25GW shortfall in the 40GW rooftop solar target, compared to just 1.8GW in the utility-scale solar target. "Utility-scale solar capacity addition is on track. India is set to achieve nearly 97 per cent of its 60GW target," says <keyword id="13598083" type="General" weightage="80" keywordseo="gulia" source="Orion">Gulia</keyword>. "This makes it imperative to have a more concerted effort towards expanding rooftop solar." Headwinds ranging from pandemic-induced supply chain disruption to deeply rooted policy restrictions have impeded the growth of India's rooftop solar (onsite solar power) and open access solar (offsite solar) installations. "The anticipated 27GW shortfall from the 2022 solar target can be attributed to a string of challenges which are slowing overall progress on renewable energy targets," says co-author <keyword id="4412277" type="General" weightage="50" keywordseo="vibhuti-garg" source="Orion">Vibhuti Garg</keyword>, Energy Economist and Lead India, IEEFA. On the current trajectory, the report finds India's solar target of 300GW by 2030 will be off the mark by about 86GW. These challenges include: regulatory roadblocks; net metering limits; the twin burdens of basic customs duty (BCD) on imported cells and modules and issues with the Approved List of Models and Manufacturers (ALMM); unsigned power supply agreements and banking restrictions; financing issues plus delays in or rejection of open access approval grants; and the unpredictability of future open access charges. "Central and state government policies and regulations must be aligned to support the solar sector overall, and especially the ailing rooftop and open access segments of the market," says co-author Akhil Thayillam, Senior Research Associate, JMK Research. The report proposes short- and long-term measures to get India back on track to meet solar targets. The short-term measures include uniform policies to apply nationally for at least the next five years and consistent regulations for net metering and banking facilities, also to apply nationally. In the long-term, stricter enforcement of the renewable purchase obligation and improved financial health, and potentially privatisation, of distribution companies (discoms). In rooftop solar, state-level efforts such as Gujarat's Surya Scheme need to be replicated by other states in the short-term to help in boosting capacity, says Gulia. "It is also likely that the government, in the short-term, will push aggressively for expediting solar capacity addition to achieve the 100GW target by 2022 by re-allocating some of the unmet rooftop target to utility-scale generation." SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/koo-founder-invites-elon-musk-after-he-turns-down-twitter-board-seat/articleshow/90780040.cms">Koo cofounder urges Elon Musk to work with Twitter’s rival in India</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/netflix-introduces-two-thumbs-up-for-shows-and-movies-you-really-really-like-and-want-to-see-more-of/articleshow/90783309.cms">Netflix introduces Two Thumbs Up for shows and movies you really, really like and want to see more of</a>

India likely to miss 2022 solar target by 27%, says report

Last week, the Chinese government announced that it was cutting <keyword id="113746" type="COMPANY" weightage="20" keywordseo="subsidies">subsidies</keyword> and also introducing a cap on solar power projects in the country. In <a href="http://www.ndrc.gov.cn/gzdt/201806/t20180601_888639.html">a statement</a>, the National Development and Reform Commission said that it was indefinitely freezing the allocation of subsidies to new solar plants and lowering the overall value of clean energy tariffs by as much as 9%. <keyword id="1334" type="COUNTRY" weightage="20" keywordseo="China">China</keyword>’s solar industry has expanded at a rapid pace, reaching 53 gigawatts last year. The government now plans to add only 30 gigawatts this year. The government’s decision to curb the expansion of the solar industry was likely motivated by the need to reduce the spending deficit in the country’s renewable energy fund. Furthermore, China does not have the adequate transmission infrastructure to support all this solar power generation. Its power grids are heavily overused. The policy will likely be rolled back once additional infrastructure is built. A supply glut of solar equipment Given China’s status as the world’s largest producer of <keyword id="6357019" type="UNKNOWN" weightage="20" keywordseo="solar-energy">solar energy</keyword>, global production of solar power is expected to fall in the immediate term. A cut in subsidies will make a lot of Chinese solar projects less financially viable. The move is also expected to result in a dramatic <keyword id="62456" type="ORGANIZATION" weightage="20" keywordseo="Oversupply">oversupply</keyword> of solar cells and modules, due to a freeze in new solar projects and reduction of demand from domestic solar power developers. This in turn, will cause prices of Chinese solar equipment to plummet. And, this is why the policy could be beneficial for India. India is one of the largest consumers of Chinese solar cells and modules. In fact, <a href="https://mnre.gov.in/file-manager/UserFiles/gspd-concept.pdf">around 80-85%</a> of the inputs for its solar projects come from countries like China and Malaysia due to a lack of domestic manufacturing capacity. The reduction in the price of solar equipment will lower the costs for Indian solar power companies, and give the government’s renewable energy plans a much needed boost. The government recently raised its renewable energy generation target from 175 gigawatts <a href="https://economictimes.indiatimes.com/industry/energy/power/india-will-add-225-gw-renewable-energy-project-capacity-by-2022-r-k-singh/articleshow/64461995.cms">to 227 gigawatts by 2022.</a> Indian manufacturers stand to lose Once again, India’s domestic manufacturers of solar power equipment stand to lose. They simply can’t match the prices and quality of their Chinese counterparts. They were dealt a blow last week when the Indian government <a href="https://www.businessinsider.in/indias-government-decides-against-levying-duties-on-solar-equipment-imports/articleshow/64399739.cms">decided against levying a 70% duty</a> on imports of solar cells and modules. The crash in the prices of Chinese solar cells and modules will hurt them even further. As they face the threat of being completely shut out of the market, the Indian government will have no choice but to support them with generous subsidies - the complete opposite of what China’s doing.

China’s decision to cut state support for solar projects will be a mixed blessing for India

<ul><li>India plans to achieve 100 gigawatts of <keyword id="6357019" type="ORGANIZATION" weightage="20" keywordseo="solar-energy">solar energy</keyword> capacity by 2022. </li><li>Imports from China, Taiwan and Malaysia comprise more than 80% of solar panels and cells used by power producers in India. </li><li>India needs to support domestic manufacturers of solar cells and modules. </li></ul>As Prime Minister Modi inaugurated the International Solar Alliance’s first summit on March 11th, he reiterated his aim to make India a solar energy powerhouse. With 33 countries in attendance, Modi also unveiled a credit line of $1.4bn for 27 <keyword id="70990" type="ORGANIZATION" weightage="20" keywordseo="Solar-power">solar power</keyword> projects in around 15 countries. Modi was instrumental in forming the alliance. The ISA — which now boasts the membership of 121 countries located between the northern and southern tropics — will be headquartered in the Indian city of Gurgaon, on the outskirts of Delhi. The overall goal of the alliance is to create a 1000 gigawatts of solar energy capacity by 2030 by mobilising $1trn worth of investments. However, India’s leadership hinges on the government’s target to achieve a domestic renewable energy capacity of 175 gigawatts by 2022, 100 gigawatts of which is earmarked from the solar energy sector. But can it meet this target? India has made significant progress so far by facilitating the construction of a number of plants, rooftop systems and solar parks across the country. It has secured financing from multilateral institutions like the World Bank and introduced regulations for the procurement of solar power through auctions. According to the Central Electricity Authority, its total renewable energy generation stood at 62.8 gigawatts at the end of January 2018. Solar energy generation counted for 17.1 gigawatts. This represents a near doubling in total solar production since the end of 2016. However, there is a catch. This growth has been enabled by the imports of cells and panels from countries like China. India does not have the domestic manufacturing capacity to meet its solar targets. Imports from China, Taiwan and Malaysia comprise more than 80% of solar panels and cells used by power producers in India. Domestic manufacturers don’t have the requisite scale, technologies and supply chain efficiencies to compete with their east Asian competitors and have hence clamoured for government intervention. A looming 70% anti-dumping duty on solar equipment made in these countries threatens to drive prices up for producers and distribution companies, scare foreign investors and lead to project delays or cancellations. The end result? India won’t be able to meet its solar energy target. It is therefore critical for India to support domestic manufacturers of solar cells and modules. In December 2017, the Ministry of Renewable Energy released a concept note with a list of steps to boost the competitiveness of local manufacturers. These included a 30% subsidy for the construction or expansion of manufacturing facilities, cheap financing, customs exemptions for heavy machinery and a local sourcing requirement scheme in government projects. The government will have to go further if it wants to reduce its dependence on solar cell imports. The proposals outlined mainly entail the subsidising of local production along with discrimination against foreign manufacturers. In addition to improving transmission infrastructure, the government needs to invest in industrial training programmes and support innovation by providing domestic manufacturers with research and development (R&amp;D) incentives. It can also subsidise the production of upstream raw materials like polysicons and wafers that are necessary for the manufacturing of cells and panels. The International Solar Alliance can help in this regard. It will enable the sharing of technologies between member countries and plug resource gaps. India must therefore leverage its leadership of the group to its advantage.

India needs to support domestic manufacturers in order to achieve its solar energy targets

New Delhi, Feb 19 () India's solar energy capacity addition dipped 12 per cent to 7,346 megawatts (MW) in the calender year 2019 from 8,338 MW in 2018, according to a report by Mercom India Research. While 2019 was a lost year for the country's solar sector, Mercom India Research expects solar installations to rise by 17 per cent year-on-year (y-o-y) to about 8,500 MW by the end of 2020. "The country installed 7,346 MW of solar in 2019, a 12 per cent decline year-over-year (YoY), compared to 8,338 MW installed in 2018," according to the report titled 'Q4 &amp; Annual 2019 India Solar Market Update'. It also estimates solar installations in the range of 65-70 gigawatt (GW) by 2022, based on the current market conditions. The government has set a solar installation target of 100 GW by 2022. The large-scale solar projects accounted for 85 per cent of installations with 6,242 MW in 2019 and saw a 7 per cent y-o-y fall, and rooftop solar made up the remaining 15 per cent adding 1,104 MW, a 33 per cent drop y-o-y. Karnataka was the top state for solar in 2019 with 1.8 GW, followed by Rajasthan and Tamil Nadu. Together, these three states accounted for almost 70 per cent of solar installations in 2019. "The demand outlook for 2020 looks better with a stronger project pipeline, and we should see the solar market resume y-o-y growth again," said Raj Prabhu, CEO of Mercom Capital Group in a statement. He also said that a lot will depend on the economy and lending situation getting back on track, the impact of coronavirus, and the outcome of the 20 per cent basic customs duty announced in the recent Budget. At the end of 2019, cumulative solar installations reached almost 35.7 GW. Large-scale projects accounted for 31.3 GW (87.6 per cent), whereas rooftop solar installations accounted for 4.4 GW (12.4 per cent). The large-scale solar project development pipeline stands at 23.7 GW, with 31.5 GW of projects tendered and pending auction at the end of the fourth quarter of 2019. The Indian solar market added 1,897 MW in the October-December 2019 period, a 12.8 per cent fall as compared with 2,177 MW installed in the preceding quarter. However, installations were up by 15.6 per cent compared to 1,641 MW installed in the fourth quarter of 2018. In the fourth quarter of 2019, large-scale solar projects came to 1,593 MW, while rooftop solar installations came to 304 MW, an increase of 24.1 per cent compared to 245 MW in the third quarter of 2019, it added . Multiple reasons led to the fall in large-scale solar additions in 2019 including elections, a slowing economy, liquidity issues, tariff caps, lack of financing, curtailment, payment delays, and power purchase agreements renegotiations in Andhra Pradesh. Rooftop installations declined for the first time in five years. The report pointed to the slowdown in the economy in 2019 as a significant factor, along with liquidity issues in the market following the NBFC crisis that made it difficult for installers to finance rooftop projects in a tough economy. "There are several challenges facing the industry but a few fixes, that could immediately turn around the sector, would be to remove tariff caps in reverse auctions, getting government agencies to make timely payments and facilitate lending to get the solar market moving in the right direction again," added Prabhu. After five consecutive years of decline, coal accounted for a majority of the power installations with 7.8 GW and made up 44.1 per cent of the installed capacity, followed by solar with 7.3 GW. Wind energy accounted for 2.4 GW followed by small hydro and other renewables with 154 MW and 82.5 MW, respectively. Even with coal installations rising, renewables collectively still made up a majority of the installations in 2019. KKS HRS

Solar capacity addition down 12 pc to 7,346 MW in 2019: Report

<ul><li>The <keyword id="103658" type="COMPANY" weightage="20" keywordseo="Central-Electricity-Regulatory-Commission">Central Electricity Regulatory Commission</keyword> (<keyword id="6624175" type="COMPANY" weightage="20" keywordseo="CERN">CERN</keyword>) has allowed 5.4 GW solar power project by Bhadla Solar Power, to get its safeguard duty back. </li><li>After the ruling, solar power producer will be compensated by law and will not have to wait for it for a year like the Bhadla park developer. </li><li>After safeguard duty was imposed, returns from solar power projects shrunk by 12-15%. </li></ul> Solar power producers will make more money now by the central power regulator, paving the way for more clean energy projects to take shape. The Central Electricity Regulatory Commission (CERN) has allowed 5.4 GW solar power project by Bhadla Solar Power, to get its safeguard duty back. This move will add to gains to the tune of 1.9-2.2% of the equity returns---basically the promoters and shareholders will make more profits. “Apart from benefiting affected projects, the reimbursement order provides much-needed clarity by emphasising a definite timeline for payments, and gives preference to the one-time payment mechanism,” said <keyword id="7854483" type="UNKNOWN" weightage="20" keywordseo="ankit-hakhu">Ankit Hakhu</keyword>, Associate Director, <keyword id="6359483" type="COMPANY" weightage="20" keywordseo="Crisil">CRISIL</keyword> Ratings. A report by CRISIL said that after the ruling, solar power producer will be compensated by law and will not have to wait for it for a year like the Bhadla park developer. The CERN ruling also directed Solar Energy Corporation of India and electricity distribution companies of <keyword id="6355588" type="LOCATION" weightage="20" keywordseo="rajasthan">Rajasthan</keyword> to compensate the developer of the Bhadla solar park project. The Duty Effect The order can change the way safeguard duty will affect solar power industry, since it was imposed in 2018. The move had shrunk solar power gains by 12-15%. “The safeguard duty had increased the cost of the solar projects by about 15% because the solar modules used in the projects were largely imported from China and this amounted to 60% of the total project cost,” the report said. CERN has classified the reimbursement of safeguard duty under ‘Change in law’ provision in the Bhadla solar park project. The duty had increased the cost of the solar projects by about 15% because the solar modules used in the projects were largely imported from China. And this amounted to 60% of the total project cost. “Continuing interest of solar project developers is a function of how much gets left on the table,” said <keyword id="94933" type="PERSON" weightage="20" keywordseo="Manish-Gupta">Manish Gupta</keyword>, Senior Director, CRISIL Ratings.

Solar power to get more profitable as power regulator lightens the safeguard duty burden

In its bid to build a solar India, <keyword id="6356755" type="COMPANY" weightage="20" keywordseo="IIT-Madras">IIT Madras</keyword> announced recently that it will be developing an efficient, cheap and clean way of power supply to villages using microgrids. For this, the institute has signed a MoU with power and automation technology company ABB India under government’s <keyword id="3873307" type="UNKNOWN" weightage="20" keywordseo="uchchatar-avishkar-yojana">Uchchatar Avishkar Yojana</keyword> scheme. 
 
They will be looking at developing a power management system to optimize the operation of multiple micro grids, with or without grid connection, to transmit electricity reliably to small villages. This system will also enable the integration of individual solar PV rooftops to the micro grid of a village. Such grid clusters are expected to have the capability of generating and using renewable energy locally from one kilowatt to a few hundred kilowatts. This inter-connection of micro grids with the existing distribution system will also help reduce outages and cut electricity costs. 
 
As of now, the government is looking at a generation capacity of 40 GW in the next five years through grid-connected solar photovoltaic rooftops and small scale solar PV plants. 
 
The project scope includes micro grids of 20 to 100 kW capacity equipped with battery storage. Detailed studies and simulation of the various system components along with related control and optimization logic, protection criteria, monitoring and communication will also be undertaken. 
 
"While India has set an ambitious target for solar energy generation, IIT Madras has been at the forefront in developing decentralised energy-efficient solar PV micro grid solutions tailored to meet India's urban, rural and off-grid power requirements," said Bhaskar Ramamurthi, Director of IIT Madras. 
 Meanwhile, ABB India's managing director <keyword id="222145" type="PERSON" weightage="20" keywordseo="Sanjeev-Sharma">Sanjeev Sharma</keyword> said - "In a country as huge and diverse as India, it is important to design models of integration with power management and load balancing for proven micro grids technology with the existing grid infrastructure." 
 
Interestingly, ABB’s Access to Electricity social initiative in India has already demonstrated significant impact in the country. 
 The company has brought <keyword id="70990" type="UNKNOWN" weightage="20" keywordseo="Solar-power">solar power</keyword> to 1,200 households in the Rajasthan desert and to over 100 households in the world’s largest delta region of the Sunderbans. This project follows two ongoing CSR projects with IIT-M; one for the design, installation and commissioning of a micro grid able to supply 50 kW power to a rural village, the other one to help establish and research the Center of Battery Engineering at IIT-M. 
 
ABB recently announced the setting up of India’s first solar-powered micro grid to provide uninterrupted power supply to its factories in Vadodara. 
 
With the slow but steady work by the institute, industry and the government, it seems India is not too far away from achieving its solar dream.

Building a Solar India: IIT Madras develops microgrid models for green power supply to light up remotest areas

This time when Finance Minister Arun Jaitley will present Budget 2016-17 on February 29, the renewable energy sector will be pinning hopes as they have sought VAT exemption and incentives for solar parks. 
 
The solar industry has demanded a sovereign fund to back dollar-denominated solar tariffs, solar equipment exempted from value added tax (VAT) as well as stability in wind power policies from Jaitley. 
 
FICCI maintained that solar parks should be exempted from MAT. 
 
"Solar parks should be treated at par with special economic zones (SEZs) and minimum alternate tax (MAT) exemption may be provided to power projects within solar parks," FICCI’s pre-budget memorandum stated. 
 
The industry body has also sought 2% export incentive that was given for solar components until last year but now is restricted to Category B countries. 
 
Renewable energy projects have the benefit of accelerated depreciation (AD) by which developers are allowed to claim 90% depreciation in the first year of functioning itself. 
 
Experts say the dollar-based solar tariff fund would be huge for foreign investors worried about the depreciating rupee. 
 
Meanwhile, solar manufacturing has a different view. 
 
"The simple problem with solar cell and module manufacturing in India is that it is not competitive," Jasmeet Khurana, associate director consulting, Bridge to India, told ET, adding “making them cheaply and well depends on scale, access to cheap capital, vertical integration with access to cheap and reliable energy and a level playing field against other Asian manufacturers. None of these are available in India."

Budget 2016: Renewable energy sector seeks VAT exemption on solar equipment, tariffs

New Delhi, Apr 7 () 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."We remain cautious on the outlook for the second half of the year as supply and logistics bottlenecks linger. Consequently, our full-year downgrade stands at 2.9 GW, a 24.8 per cent reduction resulting in a revised 2020 outlook of 8.9 GW of solar PV installations," Senior analyst Rishab Shrestha said.States with the highest coronavirus infection rates also correspond with the areas that are favourable to the wind and solar development.Gujarat delivered 58 per cent or 1.4 GW of newly added wind capacity in India in 2019 and is one of the top ten worst-hit states in terms of coronavirus infections.On the solar front, Karnataka (2.0 GW), Tamil Nadu (1.6 GW) and Rajasthan (1.7 GW) were the top three states accounting for 55 per cent of solar PV installations in 2019. All of which are in the top ten worst-hit states.Both analysts agree that current support measures by the government to mitigate the downturn are warranted, but if the virus situation continues to escalate and the lockdown is extended, there will be a severe financial impact on utility companies.Consequently, solar PV and wind installation developers' cash flows will also be affected, and corporate bank loans for new project development could slow to a trickle, the report added. ANZ BALBAL

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