Markets

The world is witnessing a major shift in energy demand from advanced to developing economies, with demand growing fastest in India – according to the International Energy Agency’s (IEA’s) latest World Energy Overview.

The Solar Energy Corporation of India (SECI) and Karnataka Electricity Regulatory Commission (KERC) have locked horns over the power pricing of a 970 MW solar project.

The leading trio – China, the United States and India – will comprise 70% of the projected 552 GW of solar capacity, which will be added between end-2017 and 2027, finds Fitch Solutions, which has revised down its original forecast for solar capacity growth in China. The curbed growth in China, due to subsidy cuts and restricted access to the United States and India, is expected to squeeze domestic solar equipment manufacturers, but also lead to access to cheaper solar panels in other smaller markets.

India and Taiwan have failed to reach an agreement at the World Trade Organisation (WTO) over the 25% safeguard duties imposed by India on solar imports. The talks, however, will continue.

Developers gave short shrift to gloomy predictions about depreciation, protectionism and tax headwinds as tendering and auction figures soared, but they shied away from the tough price caps set for SECI’s procurement exercises.

While the timelines for PV power plant execution and completion of manufacturing facilities are now more realistic, production obligations – especially for capacity utilization – need to be revisited.

The target of 105 GW of cumulative installed photovoltaic power, which was originally planned to be achieved by the end of the decade, has already been surpassed. PV Info Link now reports that the 2020 solar target may be revised upwards to between 210 GW and 270 GW.

A failed association with IL&FS has failed to deter SoftBank from its plan to invest a staggering $1tn in Indian solar by 2030. Now the Japanese funding giant is working with Essel Infraprojects on a 500 MW plant, with further details yet to be revealed.

As the currency continued to fall today, analysts are concerned developers will see any savings from falling module prices disappear, and lenders may get nervy, putting the national solar target in grave doubt.

Azure Power has raised the capital since June 30th, and says it is “the largest amount of financing raised by a solar power company in India during this period”. Azure says the fund leaves it well positioned to deliver a 2 GW project pipeline.