India proposes resolution to solar domestic content dispute

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

The Indian government has confirmed it will offer developers the option to bid for projects with or without a domestic content requirement (DCR), which could serve to placate domestic grievances against importers of modules.

The Jawaharlal Nehru National Solar Mission (JNNSM) Phase II, Batch I, Draft Methodology proposes the installation of 750MW of grid-connected solar projects. There has been speculation that out of this 750MW capacity, DCR would be applied to 250MW of projects while the remaining 500MW of projects will be able to choose either domestically sourced or imported components. 

Hari Manoharan from India-based RESolve Energy Consultants said the optional DCR “levels the playing field” between domestically manufactured modules and those that are imported.

Madhavan Nampoothiri, founder and director of RESolve, told PV-Tech that the optional DCR would also placate all parties involved in the complaint filed with the Indian government last year alleging that module suppliers from the US, China, Malaysia and Taiwan are selling below cost, or “dumping”, on the Indian market.

“Only the part of the mission that has DCR will be affected,” said Nampoothiri. “In a way, it could be risk mitigation against the entire mission getting stalled due to the disputes.

“By having two separate targets, the government might be trying to keep the developers and the overseas manufacturers happy on one side. On the other hand, the domestic manufacturers might also get a partial satisfaction that they do not have to compete with the imported modules.”

In addition, the DCR currently only applies to crystalline silicon based modules with thin film being exempt. However, this has resulted in companies importing thin-film technologies to the detriment of its domestic module manufacturers.

However, Manoharan believes the DCR choice provided by the government makes technology a moot point.

“Technology choice does not matter because there are two separate windows for allocation – one with domestic modules and one without,” said Manoharan.

“Developers feel that using imported components are most cost effective and thus they would prefer import which alienates the local manufacturers.

“Now having a separate allocation for domestic components means that it facilitates the domestic manufacturers too. The disparity between the quantum of allocation between the two processes is likely because of the fact that capacity addition is driven by developers rather than the domestic manufacturers and with capacity addition being the primary goal, this thought process could make sense.”

The Draft Methodology, released by the Solar Energy Corporation of India will implement projects under the Viability Gap Funding formula.

26 January 2022
Join this free webinar for our analysis of the growth of N-Type technology including; new capacity expansions and production output. We'll also be looking at the global manufacturing footprint with forecasts on how much product will be made outside of China this year and which companies are driving technology change across the crystalline silicon value chain.
23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
8 March 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.
29 March 2022
Now in its 10th sell-out year, Large Scale Solar returns to Lisbon in 2022. We are excited to gather together face-to-face with the European solar industry as we provide unique and exclusive access to a powerful selection of the market's key stakeholders. Join this elite summit to find out how the market is maturing, which new markets are becoming more exciting, how technology is evolving and who's driving the market forward into the 2020s. Always senior, packed with developers, EPCs, utilities and investors this is the event for companies serious about European solar PV.

Read Next

January 25, 2022
Regulators in Nevada have paved the way for two solar-storage hybrid projects to replace a legacy coal power plant in the US state, approving their sale to utility NV Energy.
January 25, 2022
The Czech Republic’s largest utility, ČEZ Group, should scale up its domestic solar PV portfolio over the next decade instead of pursuing new nuclear power plants, the Institute for Energy Economics and Financial Analysis (IEEFA) has said.
January 25, 2022
SK Ecoplant, part of the South Korean conglomerate SK Group, has signed a US$200 million joint venture (JV) agreement with Vietnamese rooftop specialists Nami Solar for the development of 250MW of rooftop solar in Vietnam over the next four years.
PV Tech Premium
January 25, 2022
European solar power purchase agreement (PPA) prices can be expected to level off this year following a turbulent end to 2021 as the market undergoes a shift in the balance of power to the seller side.
January 25, 2022
Indian PV encapsulant and backsheet manufacturer RenewSys has brought its encapsulant production capacity up to 3GW with the commissioning of a new line in Bengaluru, India, with the company eventually targeting 11GW of capacity through a “phased manner”.
January 25, 2022
A consortium including Saudi solar developer ACWA Power has inaugurated the 500MW Ibri 2 solar project in Oman, which becomes the country’s largest utility-scale solar project to date.  

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal