India’s RE capacity addition continues to impress, even as low tariffs make profits hard to come by

Renewable Energy: “Will easily meet renewable target”, or India target in jeopardy? 7.5% tax on imported solar panels, 70% duty on China, Malaysia solar cells proposed

India crosses 62GW in renewables

India’s installed renewable energy capacity touched over 62 GW last year: solar 16.61GW, wind 32.7GW, 8.29GW biomass, 4.40GW hydro power. India is chasing ambitious 175GW renewable target by 2022.

Will meet 175GW renewable target ‘before 2022’

The Power Minister told Parliament, India will hit 175GW renewable energy target ahead of 2022. He said, India’s renewable capacity is about 69GW, if we include 6,500 MW projects under-installation projects. “Apart from that, we already bid out about 14,000MW in 2017, adding that it will go up to 84,000MW, and next year again we are going to bid out about 30,000-40,000MW. Our target is about 1,75,000MW and we will achieve it easily… before 2022,” he said.

Solar target in jeopardy: 7.5% duty on solar imports, 70% on China, Malaysia solar cells proposed

India may charge 7.5% tax on all imported solar panels and proposed 70% ‘safeguard’ duty on Chinese and Malaysian solar panels to boost domestic manufacturing. India’s annual average solar cell requirement is 20GW, while annual domestic solar production is 3GWGovernment may reclassify solar panels (since they produce electricity) as motors to tax the imports with 7.5% duty. India is the top importer of cheaper Chinese panels _ that allowed power producers to offer some of the world’s lowest tariffsThe proposed taxes may disrupt Centre’s solar target of 100 GW by 2022. The rising global costs already left an impact in the last auctions and projects were delayed last year after customs blocked huge solar cargoes demanding import duties.

Low tariffs killing profits, power firms look to sell directly to consumers

Large renewable power producers such as ReNew and Greenko are reportedly planning to directly sell power to consumers and diversify into transmission and distribution. Experts say developers are trying to boost profits as record low tariffs are impacting their margins. Wind power tariffs plummeted to Rs 2.43 per unit last year and solar tariffs are at Rs 2.47 and Rs 2.48 per unit.

First: German power usage reached 100% renewable

On January 1, heavy winds and low demand post New Year’s eve briefly landed Germany’s power usage at around 100% renewable for the first time. Wind power accounted for 85%, the rest was from biomass and hydro power. Solar was zero before sunrise. Tariffs fell to negative, and extra power was passed on to neighbouring countries.

German carbon emissions ‘remain same’

While wind power made coal and nuclear redundant for the first time, Germany’s carbon emissions remained the same for the third year in a row, propped up by heavy use of oil and gas in transport, heating and industry.

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