Having acted against Turkey, the Trump administration has removed India too from the list of nations exempt from import tariffs on solar cells and modules.
Following Indian utility National Thermal Power Corp.’s proposal for PV projects in International Solar Alliance member countries, the organization has invited bids from companies in such nations with comparable credentials and experience, as long as they own at least 250 MW of solar capacity.
The acquisition would be made through Khanij Bidesh India Ltd (KABIL)—a joint venture of three public-sector mining units—which recently visited the Lithium Triangle countries in South America (Chile, Argentina and Bolivia) to explore the possibility of lithium acquisition.
Falling PV panel prices led to notable year-on-year falls in the cost of developing solar plants around the world. India led the way with PV projects costing a weighted average of just $793/kW of capacity installed in 2018. Costs in China dipped to $879/kW last year, while solar projects in US and Australia cost $1,500.
While the world’s biggest solar manufacturers are confident there are plenty of alternative markets for a rising volume of panel exports, the message spelled out by first-quarter shipment figures is that protectionism works.
India’s energy demand will rise as the economy expands and more people have access to power, cooking gas and transport. Currently, India is the third largest energy consumer after China and the US. Its energy demand is expected to grow three-fold by 2040.
The Himachal Pradesh Electricity Regulatory Commission (HPERC) has followed the lead of the authorities in Tamil Nadu, Bihar and Maharashtra in setting generic levelised tariffs for PV projects.
Chinese solar modules currently meet around 80% of India’s demand. Domestic modules face stiff competition from those imported from China, which cost 10-20% less, even after the imposition of safeguard duties.
With Narendra Modi’s government stunning pollsters with another huge victory, the solar industry expects renewable power momentum to be maintained with steps including anti-dumping duty on solar module imports, a national policy for rooftop solar and an emphasis on easing private-sector participation in the power sector.
The fund will be used for a broad modernization program that will help Indian railways to transition from dependence on fossil fuels to renewable energy.
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