Solar developers are facing delays waiting for power transformers as manufacturing capacity for this key component in large-scale solar projects has failed to keep pace with demand, slowing solar deployment in India.
With approximately 143 GW of large-scale solar projects under various stages of development and another 96 GW of solar projects tendered and pending auction, the demand for transformers is exploding, according to Mercom India Research.
The report revealed that the lead time for procuring 220 kV transformers has increased from 8-9 months to nearly 14 months, according to Ashish Agarwal, head of solar and storage at BluePine Energy, a renewable energy developer.
“The rapid expansion of railways, metro systems, power transmission infrastructure, power projects, and solar projects has driven up the demand and pricing for transformers,” said Agarwal. “Additionally, many Indian engineering, procurement, and construction (EPC) contractors are undertaking projects overseas and utilising the Indian supply chain, leading to increased exports of power transformers.”
India installed about 14.7 GW of solar capacity in fiscal
India installed about 14.7 GW of solar capacity in fiscal 2024 (11.7 GW of utility-scale solar installations and 3 GW of rooftop solar), according to an analysis by JMK. The top three states for new additions were Gujarat (4.8 GW), Rajasthan (3.4 GW), and Madhya Pradesh (0.8 GW).
As of March 31, 2024, about 68.2 GW of utility-scale solar capacity had been commissioned in India, while another 65.6 GW is under pipeline (where auctions are completed). Rajasthan has 19.9 GW of installed solar capacity, followed by Gujarat (10.6 GW) and Karnataka (9.2 GW), PV Magazine reported.
JMK said India will commission about 16.9 GW of new utility-scale solar projects and 4 GW of rooftop or onsite solar projects in the year ending March 31, 2025.
Government cancels auction of 14 critical minerals, launches fourth tranche
The Centre launched the fourth tranche of e-auction for critical and strategic minerals, offering concessions for 21 mineral blocks, even as it canceled the auction of 14 mineral blocks from the second tranche, Mercom reported.
The ministry attributed the cancellation due to poor response. In February, the ministry issued the second tranche to grant concessions for 18 critical and strategic mineral blocks across eight states, with 17 designated for composite licenses and one for a mining lease.
According to a notice on the MSTC website, five of these 14 blocks received no bids. The auction for the other nine blocks was annulled due to fewer than three technically qualified bidders.
China’s surge in solar and hydro points to early carbon peak
China’s power generation from fossil fuels fell in May, Bloomberg reported, as hydroelectric and solar power surged, indicating that the country “may have peaked emissions” years before its goal to do so by 2030. It adds that this peak may not occur, however, if China “is forced to reprioritise carbon-heavy investment to revive [economic] growth”.
Meanwhile, in another news, the Chinese government has promised to “guide capacity expansions and avoid redundant investments” in response to the country’s “beleaguered” solar manufacturers’ call for help, reported Bllomberg. China’s National Energy Administration (NEA) will “monitor solar factory utilisation and expansion plans to help improve market conditions”, the outlet added.
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