Documentos de Académico
Documentos de Profesional
Documentos de Cultura
SOLAR
HANDBOOK
2017
Including the
INDIA SOLAR
CEO SURVEY
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But all is not as it seems. The pace of new tender announcements and
completed auctions has slowed down significantly in the last year (-68%
and -59% respectively). Southern states have frontloaded capacity buildout
– Karnataka (installed plus tendered capacity of 69% as against March 2022
target); Andhra Pradesh (74%) and Telangana (70%) – and are bound to slow
down. Amongst other large states, Maharashtra and Gujarat, like many others,
have surplus power availability and remain unenthusiastic to new solar power.
The Rewa and Kadappa tender results have jolted the policy makers, DISCOMs,
project developers and investors. Greenfield solar power at prices of M 3.00-
3.50 (approximately ¢ 5)/ kWh is very attractive and should create strong
demand pull in the medium-to-long term. But it is also leading to buyer’s
remorse for projects already built and under development. In particular, states
that have completed auctions with prices of M 4.00-5.50/kWh in the last 6-12
months (Jharkhand, Andhra Pradesh, Haryana) are refusing to sign PPA’s,
which is creating uncertainty in the market.
The slow down provides much needed breathing room to developers and
investors, who need to consolidate, focus on capital raising and execution on-
the-ground. The pace of fund raising transactions – IPO’s, bond offerings and
M&A’s – has picked up and is bound to accelerate in the coming years.
Longer term, if prices continue to fall at the same rate, solar plus storage will
be a genuine alternative to thermal base load sources in the next 3-4 years.
The carbon-free world is approaching fast and the Indian government should
commit fully to exploiting its potential to transform the shape of our economy.
I hope that you enjoy reading this report and will be grateful for your feedback.
Vinay Rustagi
Managing Director
In India, rooftop solar has maintained a 10-12% share of overall solar capacity.
This is much lower than other key markets such as US, Germany, China, Spain
and Australia.
But there has been a significant slowdown in the pace of new tender
announcements mainly due to weak power demand growth in the country.
Projections
BRIDGE TO INDIA expects 44 GW of cumulative utility scale capacity addition in
India until 2021. We expect slowdown in 2018 because of lull in recent tender
activity but demand is expected to pick up again from 2019 onwards.
Notes
EPC – Engineering, Procurement and Construction
VGF – Viability Gap Funding, a capital subsidy provided by the Government of India
PPP – Public Private Partnership
RPO – Renewable Purchase Obligation
In line with the 8% solar RPO target for the country for March 2022, MNRE has
allocated individual targets for states to set, but actual performance varies
highly across states and enforcement is poor.
Figure 10: Installed plus pipeline capacity vs RPO target for 2021-22
Financial incentives
The Government of India has been offering several financial incentives to
promote the solar sector. But as cost of solar power is coming down, these
benefits are being slowly phased out.
Viability gap funding (VGF): Solar Energy Corporation of India (SECI) has
allocated 4,835 MW of project capacity under the VGF route, whereby a
capital subsidy is provided to project developers bidding for projects at a pre-
determined tariff. As of March 31, 2017, another 785 MW of tenders under SECI
VGF scheme are under process.
Ten-year corporate tax holiday: A 10-year income tax holiday has been offered
to solar projects so far, but this benefit has been withdrawn from April 2017
onwards.
27 states and union territories have joined the Government of India’s UDAY
scheme for financial and operational reform of DISCOMs. Approximately
M 2,043 billion ($ 30 billion) worth of bonds have been issued, equivalent to
nearly 50% of total outstanding debt as of March, 2016.
Source: UDAY website, Power Finance Corporation, Ministry of Power report on “State Distribution Utilities- Fifth Annual
Integrated Rating”
Notes
AT&C - Aggregate Technical and Commercial Losses
* There is no debt restructuring component for these states.
Capital Expenditure (CAPEX) route accounts for nearly 84% of total installed
capacity but the Operating Expenditure (OPEX) model has been gaining ground
in the last couple of years.
Projections
11.9 GW of new rooftop solar capacity addition is expected in India between
2017 and 2021.
Import/export status
About 88% of all module requirement in India is met through imports (84%
from China). Imports have risen in line with growth in capacity addition but
exports have seen a significant downward trend.
Figure 19:
Solar module import trends
Manufacturing incentives
The Government of India, together with state governments, is offering several
incentives for manufacturing modules in India – including capital subsidy,
operating cost subsidy and export incentives – under different policies. But
a sector specific manufacturing policy, which has been believed to be in
consideration for over a year now, has not been finalized yet.
Notes:
1. Some company names are shown more than once in this table depending on range of their
business activities.
2. For multinational companies, the survey has been completed by the respective head of Indian solar
business.
Domestic manufacturing
Should domestic manufacturing be actively supported and
incentivised by the government
We work actively with all leading stakeholders including project developers and
investors, energy customers, equipment suppliers, regulators, policy makers
and development institutions. We have helped a number of international
top-tier cleantech companies in growing their business footprint in India by
providing them with strategic advice, business planning, risk assessment and
JV partner selection services.
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