Softdisk Solar
Downward trend continues as 2nd Wave hits in 2020-21. Picks-up since October 2021 as cases reduce : SOFTDISK
India should have crossed  atleast 60 GW of Solar Power Capacity as against 40.08 GW as on  31 March  2021.

India need to increase Solar Power by    commissioning by nearly 65 GW to reach the capacity of 100 GW by fiscal 2022, to meet Hon. Prime Minister dream. Which now seems not in achievable, however even if we add 20 GW by year end it will be phenomenal but that to is a over expectation. You can call a pandemic effect or DCR initiatives are concerned. It still falls short of the National Solar Mission target by a huge margin.

We expect an additional of another 15 to 20 GW max by year  end  Which makes the total capacity to around 45-50 GW. Just half even less of our Prime Ministers ambitation.  Further the Atamanirbhar Bharat initiative making DCR compulsory for Govt. Agency partnered Companies Power plants, has certainly slowed down the coming up of Plants. Things are not going to be easy even after reaching 50 GW. 

India then imposed a 20% levy on imported solar modules, cells and inverters from August 2020, replacing the current safeguard duty. Numerous local reports state the levy was proposed by Indian power minister RK Singh during a call with industry representatives, confirming that Prime Minister Narendra Modi's government intended to impose a Basic Custom Duty (BCD) of 20% on imports.

That BCD, which comes as part of the 'AtamaNirbhar Bharat' initiative designed at stimulating domestic manufacturing, was replaced by another set of regulations which got effective from August 2020.

The update serves as confirmation of duties first teased within the Union budget earlier this year, which at the time set no particular time frame for the introduction of such levies. It would also seem to remove any confusion over potential exemptions for components or equipment, as were suggested a month later. 

It also comes amidst a push from India's Ministry of New and Renewable Energy to rekindle domestic renewable manufacturing having witnessed imports struggle with logistics issues posed by the ongoing COVID-19 pandemic on going conflict with China. All this augurs well for future of solar in India. With corporate giants like Ambani showing interest it may not be long that India becomes one of the leaders solar energy.

In May 2020, the government said that it had designated Solar PV Manufacturing, as well as advanced battery manufacture as 'Champion Sectors' of national self-reliance and would be supporting both with incentives. 

In addition, Union Minister for Power Mr. RK Singh also confirmed that an approved list of PV manufacturers for use in government-backed solar projects would be published by the end of this year, having been pushed back from the original date of April following the onset of the pandemic. While expected, the news will come as blow to Chinese inverter manufacturers which have come to dominate India's rooftop solar inverter market.

Softdisk believes that lower the PPP lesser is the possibility of the project development company to survive, and more importantly the PPP negotiated with various Governments should revisited and allow higher PPP. The rates such as Rs 2.44 per unit as these will never allow the 500 MW plant to recover its  money in   15 years time leave alone profits, by that time maintenance and reduced yield will become focus area. Already the PPA executed by Uttar Pradesh  Govt. was at 2.88 per unit.

India will not be able to achieve its ambitious target of generating 100 GW Solar Power by 2022. In a report, Softdisk research wing said that in the best-case scenario, the country will touch 65-70 GW, against the current capacity of 35.12 GW as on June 2020. But the pandemic  reduced it further to 50-55 GW.

"We are more confident that projects with the Solar Energy Corp. of India (SECI) will be executed faster; their projects are better able to deal with evacuation concerns (i.e. connection to the national grid)," said Salil Chatterjee, head

Softdisk Research. SECI also cancelled 950 MW of solar tenders in July, unhappy with the tariffs that developers were bidding. 

"The government must be live with the outcome of bid price; it should go ahead with these projects even if tariffs are higher than what they like," Salil said. "It's hard to say which tariff is unreasonable; it's hard to predict whether module prices will go up or down in the future. If bids are scrapped, you'll further delay the overall program." India is the world's third-largest energy consumer after the US and China. Its renewable energy program is ambitious where as it stands far from it now.

Since 1st April 2022 - 40% BCD on solar modules and 25% BCD on solar cells will be applicable. Now how under development projects will be completed with out escalation in price.

This will ensure that PM announces another ambition plan to increase by 50GW i.e to have 150GW by 31st  March 2025, which may ensure that this 100 GW (1st Ambition) at least gets fulfilled & crossed.

Solar PV industry analysts and project developers in India feel that imposing BCD will be a negative step in the overall goal for de-carbonizing the energy sector in India, where tremendous progress has been made in the last four years.

Levying such duties will drastically affect solar power developers and capacity addition targets set by the government of India.We have been advocating for quite some time that there should be a level-playing field in terms of uniform taxation and levy of duty for every manufacturer in the country, including both who are inside SEZ and DTA, he lament.

Softdisk believes that if a measure promotes domestic manufacturing then we should definitely do that. When we talk about domestic manufacturing, we should also keep in mind to be independent of imports not just on modules but cells, wafers, and ingots, and device strategies to strengthen domestic supply chains for the same. Vertical integration is essential and should be definitely done.

Some reports suggest that renewable energy projects already commissioned might not be able to take advantage of the 'grandfather clause' to import any solar equipment from China. Since the grandfathering was announced, we have collected information of all the projects that are in the pipeline. So, we have collected information on 111 projects with 30-GW capacity in the pipeline. Immediately after the announcement came six months back, we stood up with the Government for  'grandfathering' because we believe that there are still a lot of pending claims for the 'change in law' compensations for safeguard duty and GST from 2017 and 2018. Those compensations have not been awarded.

Recently the Minister in statement said that it is not possible to 'grandfather'. But, we believe that grandfathering will go a long way to help developers because it will ease them from the additional burden of the safeguard duty (SGD) or basic customs duty (BCD). Secondly, even though 'grandfathering' is not possible then the ministry should consider a mode of compensation mechanism which would not get dragged over time and the claims by developers are compensated as early as possible.

The minister has said that it will be in line with the coal-based cess where, at present based on the increase in the coal cess or surcharge, the generators are able to claim the increase directly through the intermediary and they will get a post-facto regulatory approval. In principle it looks fine, provided it is implemented in this form where the developers can get benefit right from day one.

The reason behind it is that we have an ambitious renewable energy target and it requires a lot of capital. And when we have BCD, it is the direct equity of a company that is going into paying these additional costs. That means that this money, which was supposed to go into new projects, is going in paying these duties which is not good for our target and solar proliferation. So, there should be enough liquidity with the industry both in terms of payments receivables from the discoms as well as these compensations that come up due to certain 'change in law' so that the industry does not suffer a cash crunch.

If it is in the interest of the country or if it is taking us in the path of energy security, while we are transitioning to new energy forms, then no one will be against such trade barriers. However, if there are no enabling policies in place for promoting domestic manufacturing, then BCD might not do justice for providing domestic manufacturing as they should.

More incentives should be provided for developers and large-scale plants for using domestic products because otherwise it will be very difficult to ensure demand for Indian modules. The government has also come up with domestic content requirement schemes such as KUSUM. If fully implemented, it will help uptake of about 25,000 MW domestically-made cells and modules. That is a huge demand, almost twice the module demand of our current capacity.

According to our reports the Govt.  Will be soon launching a Solar Manufacturing Facilitation Programme.

This is aimed at creating a platform to bring domestic and foreign investors, and Indian industry together along with providing information related to manufacturing incentives in every state of the country. Exporting renewable power among states should be welcomed as it is a very good trend and it will come up more in RE rich states. It is a historic move by Andhra & Tamil Nadu.

On the global front, we already have the International Solar Alliance (ISA), which any country can join now, and we at Softdisk believe that the ISA and its programmes will be a good arena for taking Indian businesses into countries where we did not have any chance to penetrate.

All said and & done Softdisk believes that Govt.  should take all positive step to help companies setup Solar Cell Manufacturing facilities on large scale. For this a lot of investment should come from government side without which having large projects will merely remain a dream. It will require very high end players to accomplish such projects independently.

Which States Have the Highest  Solar PV Power Installed In India?

The solar energy generation in terms of installed Solar PV power generations systems have been listed.

However potential in a specific area can be assessed based on factors like availability of land, solar radiation etc. The National Institute of Solar Energy (NISE), an apex institute of Ministry of New & Renewable Energy (MNRE), has estimated the potential of solar power in the country to be around 750 GWp. However, India has just reached an aggregate installed capacity of grid-interactive solar energy at 40.08 GW as of 31st March, 2021.

The top ten states in terms of the installed power generation in India along with their installed s potential of power generation  capacity are as follows :

Karnataka

Karnataka  are in No 1 position in the list of states with largest installed base till 31st March 2021, Karnataka's cumulative installed grid-connected solar power generation capacity too grew significantly to 7,355.17 MW (or 7.35 GW) as on March 31, 2021. Karnataka has performed well in terms of installation as compared to all the other states having a higher potential of solar energy generation. The state has until recently, offered one of the better open access regimes for renewable power, which has also helped it moved ahead with the highest  solar energy production in the country. Karnataka's  total estimated solar energy generation capacity is close to 24.70 Gwp.

Rajasthan

Rajasthan are in No 2 position in the list of states with second largest installed base till 31st March 2021, its total installed grid-connected solar energy generation capacity stood at merely 5,732.58  MW (or 5.7 GW approx) as on March 31, 2021.

In recent times, the state has moved ahead with a more aggressive solar expansion plan, ensuring it remains a key contributor to the national goal of 100 GW solar by 2022. With the highest solar energy production in the country. It is having an aggregate solar power potential of 142.31 gigawatts (Gwp).

Tamilnadu

Tamilnadu are in No 3 position in the list of states with third largest installed base till 31st March 2021, its total installed grid-connected solar energy generation capacity stood at merely 4,475.21  MW (or 4.4 GW approx) as on March 31, 2021. In recent times, the state has moved ahead with a more aggressive solar expansion plan, ensuring it remains a key contributor to the national goal of 100 GW solar by 2022 with the highest solar energy production. It is having an aggregate solar power potential of 140.23 gigawatts (Gwp).

Gujarat

Gujrat are in No 4 position in the list of states with large installed base till 31st March 2021, the state's total installed grid-interactive solar power generation capacity stood at 4,430.82 MW (or 4.4 GW) as on March 31, 2021, and represent the state with quite satisfactory numbers as compared to other higher potential states with its contributions in solar energy production in the country. Its total potential solar energy generation capacity is calculated at 35.77 Gwp.

Andhra Pradesh

Andhra Pradesh are in No 5 position in the list of states with large installed base till 31st March 2021, Andhra Pradesh's total installed grid-connected solar energy generation capacity reached 4,203.00 MW (or 4.2 GW) as on March 31, 2021. If there were not policy-related hurdles in the recent past these numbers could be much higher. with its contributions to solar energy production in the country.

Its aggregate solar power potential is estimated at 38.44 Gwp.

Telangana

Telangana are in No 6 position in the list of states with large installed base till 31st March 2021,Telangana's total installed grid-connected solar energy generation capacity, including rooftop and ground-mounted, stood at only 3,953.12 MW (or 3.96 GW) at the end of March 2021.  With its high level of industrialization, this central Indian state has the potential to be a game-changer for the entire energy mix for the country. With its contributions to  solar energy production in the country.

Its aggregate solar power potential capacity is calculated at 35.20 Gwp. 

Madhya Pradesh

Madhya Pradesh are in No 7 position in the list of states with large installed base till 31st March 2021 the state's cumulative installed grid-interactive solar power generation touched 2,463.22 MW (or over 2.4 GW)  While, Madhya Pradesh has done more installations as compared to Maharashtra and Jammu & Kashmir, thanks to the progress of its massive REWA solar park. However, the state's recent signing up for more thermal projects will definitely disappoint those expecting better things from the state. With its contributions to solar energy production in the country.

Its total solar energy generation capacity is estimated at 61.66 GWp.

Maharashtra

Maharashtra are in No 8 position in the list of states with large installed base till 31st March 2021. Maharashtra's total installed grid-connected solar energy generation capacity, including rooftop and ground-mounted, stood at 2,289.97 MW (or 2.3 GW) at the end of March 2021. With its high level of industrialization, this central Indian state has the potential to be a game-changer for the entire energy mix for the country.

Its aggregate solar power potential capacity is calculated at 64.32 GWp.

Uttar Pradesh

Uttar Pradesh are in No 9 position in the list of states with large installed base till 31st March 2021.  While the state's total installed grid-interactive solar energy capacity touched 1,172.50 MW (or nearly 1.1 GW) at the end of March 2021. Uttar Pradesh has also picked up the pace and is targeting now over 10 GW of renewable energy capacity addition including solar in the state. The state has a tough battle ahead if it is to overcome its reputation of high potential and low actualization.

It's aggregate estimated solar energy generation capacity stood at 22.83 Gwp.

Punjab

Punjab are in No 10 position in the list of states with large installed base till 31st March 2021, Punjab's total installed grid-connected solar energy generation capacity, including rooftop and ground-mounted, stood at only 9,59.50 MW

(or 0.95 GW) at the end of March 2021.  With its high level of industrialization & Agro based industry, this northern Indian state has the potential to be a big contributor  for the energy mix with its contributions to solar energy production in the country.

Its aggregate solar power potential capacity is calculated at 20.05 Gwp however there are chances that its solar power potential capacity can be increased by using floating solar technology. 

 

VIKRAM SOLAR : The company one of top names in PV Module Manufacturing signed a Memorandum of Understanding with the Government of Tamil Nadu to set up a 2.5 GW of solar manufacturing facility in the state. In line with the vision of Aatma Nirbhar Bharat, the company announced wafer, cell and module manufacturing set up over a period of 5 years to the tune of additional 3GW..

ADANI GREEN: Adani Green Energy Ltd bagged a manufacturing-linked solar contract from the Solar Energy Corporation of India (SECI) to develop 8 GW of projects. The transaction is valued at 45,000 crore, or $6 billion. The 8 gigawatt solar energy contract that Adani Green Energy won from the government in June 2020 has propelled it to become the world's largest solar developer by capacity. Adani, under the greenshoe option, has offered an additional capacity of 1,500 MW solar cell and module manufacturing and 6 GW of solar project development. With this, Adani's total allocation comes to 2,000 MW of solar cell and module manufacturing and 8 GW of project capacity.Adani Green is currently the top global solar developer with 2.3 GW of operational projects, 2 GW under construction, and 8 GW of awarded projects (with contracted PPAs) for a total capacity of 12.3 GW.

WAAREE: Waaree Energies Ltd., a leading PV module maker, headquartered at Mumbai and module manufacturing facility in Gujarat has deployed building integrated vertical solar photovoltaic (PV) system at the Asia's Largest Rated-4 Hyperscale Datacenter CtrlS Datacenters Ltd. Waaree, which is having 2 GW of module manufacturing capacity, has installed building integrated solar panels on all 4 walls of the facility, covering more than 5,000 sq m of facade area. On the other hand, U-Solar Clean Energy has provided engineering, procurement and construction (EPC) services for the project. Further, the installed capacity of the solar plant is about 1 MW.
Tata Power: Tata Power Solar Systems Limited has 400MW of module and 300MW cell manufacturing facilities, it is fully integrated wafer to module manufacturing facility, over 1.5 GW of our best-in-class solar modules shipped globally till date. Tata Power EPC projects of 2.6 GW commissioned till date. 260 MW of solar rooftop and distributed generation projects commissioned.

SWELECT ENERGY : Being one of the leading brands in Solar PV module manufacturing in India, aims to positively move forward towards maximum solar production capacity through constant development and use of innovative technology in this field. SWELECT is also one of the few Blooomberg TIER -1 SOLAR PV Modules manufacturers among Global companies. The company has also got the latest certification requirements from various International Markets for new products such as higher system voltage, Fire class etc. Currently, Swelect has the largest rooftop installation by an Indian company in MW terms. Recently SWELECT launched back shield protected pv panels which are first of its kind in India.

INDOSOLAR: IndoSolar Limited, a world-class manufacturing facility in India with a state of the art production lines from Germany with a capacity of 500MW of pv Cells and Modules. lndosolar Limited is under Corporate Insolvency Resolution Process and in terms of the order of the Hon'ble NCLT dated 12'th April, 2019 the powers of the Board of Directors are suspended and are vested in the Resolution Professional and lndosolar's affairs, business & assets are being managed by the Interim Resolution Professional. The Resolution Professional is performing the function as mentioned under Insolvency and Bankruptcy Code.

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