With a rapid reduction in costs, solar plus storage can be an effective alternative for customers buying peak power from the grid. At the same time, utilities can avoid investments in peak capacity or eliminate load shedding by utilizing these resources.
The government department has allocated various months for enabling organisations to hold their tendering and bidding processes, but critics have pointed out states are free to formulate their own plans.
Bidders can apply for the whole capacity or 50 MW sections, and the maximum payable tariff for the energy generated cannot exceed Rs2.93/kWh. The electricity generated will be sold to the state power company.
States such as Karnataka and Madhya Pradesh, which previously took the lead in terms of installed solar capacity, are likely to take a back seat on this issue, due to the rollback of incentives.
A combination of national, state and public body commitments could see the amount of PV added nationally treble on the last four-year period. But even with a new 7-8 GW added, rooftop solar will still be bringing up the rear.
The Singareni Collieries Company plans to pump more than Rs400 crore into nine PV projects across its operations in Telangana state. The largest of the new installations will be two 60 MW plants.
The Solar Energy Corporation of India Limited (SECI) has announced a tender for a 160 MW wind, solar and storage plant to be located in the state of Andhra Pradesh.
The tariff means PV projects will pause as developers adjust procurement strategies and new tenders risk delays or cancellation. The two-year limit on the duty will not be long enough to prompt more cell manufacturing capacity and as for imports, there are doubts over how the origin of cells will be adjudicated so that Chinese and Malaysian cells are subject to the charge, say analysts.
With a maximum fixed tariff of $0.0427/kWh under a 25-year PPA, the total capacity available is made up of 10 MW multiples and could potentially all go to one bidder.
Inspectors from solar risk management company PI Berlin visited six projects and exposed cost-cutting in installation, non-existent warranties, serious safety concerns and improbable performance figures.
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