Covid-19

‘More than 90’ suppliers of appliances such as solar lanterns and home solar panels, as well as mini-grid installers, will be offered low-interest credit by an assortment of government-backed and privately-financed entities.

The solar plant, spread across 380 hectares in the Raghanesda Solar Park, is Engie’s second-largest PV project in India. It was completed within the schedule, despite the multiple challenges during the Covid pandemic.

The latest global PV industry outlook published by trade group SolarPower Europe, has indicated tight supply of the solar panel raw material is expected to persist this year but the trade body said it would be unlikely to drive further price rises.

Ratings agency ICRA maintains a negative outlook for thermal power generation despite a rise in electricity demand. The thermal plant load factor will remain subdued at 57%. The gap between the average cost of supply and the average tariff for discoms is estimated at 70-75 paise per unit for FY2022.

Solar capacity addition in the fiscal year 2021-22 will surge, led by a strong project pipeline. Tariffs will go up amid rising module prices but will remain competitive at below INR 3/kWh (US$ 0.040/kWh).

Solar module prices have increased by about 15-20% over the last 4-5 months to around 22-23 cents/watt as of date. As PV modules comprise about 50-55% of the overall project cost, such an increase in the module price level, if sustained, may moderate the debt service coverage metrics for developers by about 12-14 basis points. 

Modules represent 45 to 55% of the project capex. In a very competitive market like India, independent power producers have lower margins, and even a modest increase in module prices will put more pressure on them.

The analysts have revised their estimate for utility-scale solar addition in the April-May-June period to 1,350 MW, as against 2,350 MW expected earlier.

A pandemic-related sales slump has dealt another blow to domestic panel makers already faced with rising input costs and an expected surge in imports due to the scheduled wind down of safeguarding duties on foreign products from late July.

Despite a Covid-hit first quarter, Borosil Renewables registered a strong growth in annual revenues driven by record sales and high price realizations in the fourth quarter.