Smaller companies are finding it increasingly difficult to enter the Indian large-scale solar market and partake in the multi-gigawatts of competitive auctions for PV capacity.
Tariffs in a 1GW solar auction in the Indian state of Uttar Pradesh have hit INR3.48-3.55/kWh (US$0.051-0.052), which is significantly higher than bids in other recent Indian auctions for a range of reasons, including a history of PPA renegotiations.
The sanctioning of a tendering scheme for 2.5GW of hybrid wind and solar capacity in India, to be allocated through a transparent bidding process, has been branded as “the right step”, by consultancy firm Bridge to India.
Bidding in the Indian solar industry has been deemed irrationally aggressive by 70% of CEOs responding to a survey from consultancy firm Bridge to India, however, sentiment remains upbeat about growth prospects and the overall industry.
India’s large-scale solar space, which has been dominated by Solar Parks in the last two years, now has standalone projects firmly back on the map with multi-Gigawatts of capacity up for grabs and a chance for higher risk-taking players.
India’s Ministry of New and Renewable Energy (MNRE) has issued a clarification in its guidelines for tariff-based competitive solar procurement implying that a change in duties will henceforth be covered as a ‘Change in Law’, which would give developers protection in case a safeguard, anti-dumping or any other duty is imposed.
Just after analysts had said India’s solar quality control standards lacked clarity and investment in testing labs, the Ministry of New and Renewable Energy (MNRE) has brought forward the enforcement date in an attempt to ensure that quality control benefits the industry as soon as possible.
Rooftop solar growth in India is rising in spite of government policy support, which has been lacking or misplaced, according to panellists at Intersolar India in Mumbai.
Indian solar tariffs are overdue a major correction and many smaller players are likely to drop out of the sector over the next few years, according to panellists at Intersolar India 2017 in Mumbai.
