India set for 16 GW of solar this fiscal year amid falling module prices

India is set to achieve 16 GW of solar capacity implementation, the country’s fastest annual pace, this fiscal year, because of a steady decline in solar module prices since October 2022. According to rating agency CRISIL, this will boost the internal rate of return (IRR) for 45 GW of utility-scale solar projects that have been awarded since fiscal 2021, reported the PV Magazine. 

The outlet said solar installation faced delays in fiscals 2022 and 2023 due to the COVID-19 pandemic and efforts to protect the Great Indian Bustard bird, resulting in project extensions. Crisil analysts anticipate accelerated solar project execution by fiscal 2026.

Falling PV module prices are set to enhance investment returns for the 45 GW of solar projects that have been awarded since fiscal 2021, with expectations for 16 GW of new capacity in the current fiscal year, says CRISIL Ratings.

According to a new report by JMK Research, India installed about 8.5 GW of solar capacity in the first nine months (January to September 2023) of 2023, about 25% less than the PV installations during the corresponding period in 2022. Utility-scale solar installations in the Jan-Sept. 2023 period (5.06 GW) were 84% down from 9.3 GW installed during the same period in 2022.

Renewable developers directed to give 15-day notice for early commissioning

Power generators can initiate supply from specific components outside the PPA now as the Centre has amended the tariff-based competitive bidding process guidelines for power procurement from renewable sources, directing developers to give a 15-day notice to end and intermediary procurers for advance commissioning of power supply.

Mercom reported that the amendments were made to the recently issued bidding guidelines for grid-connected wind power projects, wind-solar hybrid projects, solar PV power projects, and renewable energy power projects with energy storage systems. Acceptance by both end procurer and intermediary procurer is crucial within the specified fifteen-day period else developers have the option to sell the unaccepted power through power exchanges or bilateral arrangements, the outlet said. 

PFC Approves ₹1.17 trillion worth projects for DISCOMs under RDSS program

State-run Power Finance Corporation (PFC) approved projects worth over ₹1.17 trillion (~$14.04 billion) for various state distribution companies (DISCOM) under the Revamped Distribution Sector (RDSS) Program as of September 2023, Mercom reported. 

The government lender has also approved loans worth ₹70 billion (~$8.4 billion) and disbursed ₹31 billion (~$3.7 billion) under the Late Payment surcharge (LPS) program, fetching the DISCOMs more than a 50% reduction in legacy dues, the report said.

.

About The Author

Editorial Team

A team of handpicked and dedicated writers committed to fact check each climate-related statement. Go to the roots and intent of each policy implemented, internationally and at home to help you understand climate better

See author's posts