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High costs of capital and low tariffs are causing extremely tight margins for solar developers in India. PV Tech caught up with Gaetan Tiberghien, principal investment officer, South Asia for International Finance Corporation (IFC), to discuss financing in the region.

Wind power developers in India have been facing delayed payments from distribution companies of up to eight months at a time in various states, but solar developers have experienced only negligible delays in a couple of states, according to industry analysts.

India’s government has approved significant amendments to the nation’s power ‘Tariff Policy’, including increasing the Renewable Purchase Obligation (RPO) to 8% for solar energy by March 2022.

Indian conglomerate Aditya Birla Nuvo has won all 150MW in a solar auction held by the Indian state of Haryana at a tariff of INR5.08 (US$0.076)/kWh.

India as a nation is set to contribute more than any other country to the rise in global energy demand over the next 25 years to meet rising incomes and population, however, its energy demand per capita will still be 40% lower than the global average, according to a report from the International Energy Agency (IEA).