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INDIA SOLAR MAP | MARCH 2018

India added a record 10.4 GW solar capacity in 2017-18

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SECI completed auction for its 3,000 MW solar tender last week. Capacity was won by 6 developers – Acme (600 MW, tariff INR 2.44/ kWh), Azure (300 MW, 2.64), Canadian Solar (200, 2.70), Adani (300, 2.71), ReNew (500, 2.71) and Softbank (1,100 MW, 2.71). The auction follows another similar 2,000…

Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL), in partnership with the World Bank, has issued a 28 MW rooftop solar tender under the OPEX model. The tender has been re-issued but the capacity has been revised down from 40 MW earlier after conducting site surveys. The proposed capacity is expected to be deployed across a range of buildings belonging to state government educational institutions (55%), central government institutions (18%), other state government institutions (15%) and private institutions (12%).

The selected bidders are required to design, install, finance, own and operate the systems for 25 years. In addition to 30%/ 25% capital subsidy provided by central government for private institutions and government buildings respectively, the state government is offering an additional subsidy of 20%.

Learning lessons from recent SECI and other government rooftop solar tenders, this tender contains many developer friendly provisions introduced for the first time in India:

  • Identified capacities have been validated in advance using satellite imagery and site surveys;
  • A virtual ‘data room’ with technical assessment data of the site along with electricity consumption history is provided to bidders;
  • Part-commissioning of projects is allowed;
  • PPAs have been vetted and approved by the consumers in advance;
  • Performance monitoring benchmarks have been indexed seasonally to account for variation in performance;
  • Capacity has been divided into 22 project groups by type of end-consumer such as central and state government buildings, municipal buildings and others. This has been done to enable developers to bid for uniform credit profiles and secure easier financing.

Validation of capacity has been carried out to avoid post bidding mismatch. This mismatch led to SECI’s 1,000 MW rooftop tender in December 2016 being scaled down to 500 MW and further reduction in allocated capacity to 226 MW.

Investor interest in rooftop solar tenders has been waning due to multiple execution challenges faced by developers. But we understand that many developers are interested in participating in this tender as it addresses many of the issues faced in previous rooftop solar tenders issued by government agencies. If this tender is successful, it may provide a template for future rooftop solar tenders in the country.

FULL STORY

India’s total installed utility scale solar capacity grew by over 70% in 2017-18 to reach 21.3 GW. Total solar capacity including rooftop solar and off-grid systems reached 24.5 GW as of March 31, 2018.

  • Total utility scale solar capacity in 2017-18 was 9.1 GW, up 72% over last year and more than all other sources combined (4.6 GW of thermal and 1.7 GW of wind power);
  • Karnataka added 4.1 GW of new solar capacity in this period and surpassed Telangana, Rajasthan, Andhra Pradesh and Tamil Nadu to become India’s top solar state;
  • The year was notable for exponential growth in the open access market, where 1.7 GW of new capacity was added, up 275% over previous year;

 

Figure: Total utility scale solar capacity as of 31 March 2018

All figures are in MW

Map-correctSource: BRIDGE TO INDIA research

Adani was the top project developer with 1,120 MW capacity commissioned, followed by Renew and Acme. NLC and Acme lead the pipeline capacity followed by Azure, ReNew and Softbank. Four players – Hero, Suzlon, Shapoorji Palloonji and Skypower feature in the top ten list of developers for the first time.

 

Figure: Leading players based on capacity deployed in FY 2017-18

solar Map image -2

Source: BRIDGE TO INDIA research

 Amongst module suppliers, Canadian Solar led the charts with 12.9% market share followed by JA Solar (11.4%) and Trina Solar (7.9%). Adani, at the number 8 spot, is the only Indian module supplier. China’s new policy to scale back solar is likely to further eat into the domestic manufacturers’ share. ABB continues to dominate the inverter market with 20% market share. However, it is closely followed by Huawei (17%), which has climbed up from 10th place last year. Sungrow and TMEIC follow with market shares of 14% and 11% respectively.

BRIDGE TO INDIA’s latest edition of India Solar Map 2018 contains other information on state-wise and policy-wise progress of the Indian solar market (download it here for free).

 

FULL STORY

Q1 2018 saw commissioning of a record 3,766 MW (+100% over Q4 2017) of utility scale solar projects. Cumulative utility scale solar capacity has crossed the 20,000 MW mark and now stands at 21,331 MW.

 

Graph-June

The record capacity addition came despite significant delays faced in many projects under SECI tenders in Maharashtra, Odisha and Andhra Pradesh. Karnataka accounted for more than 72% of the total capacity commissioned in the quarter. Completion of most of the previously delayed projects under SECI 920 MW and Karnataka 1,200 MW tenders was the major reason behind this increase in project commissioning. This coincided with a rush in completion of open access projects because of state’s attractive open access policy – offering exemptions from cross subsidy surcharge, transmission, wheeling and banking charges – expiring at the end of March 2018. An unprecedented 1,250 MW of open access projects, 92% of total open access capacity commissioned in Q1 2018, were commissioned in Karnataka.

 

We expect commissioning activity to slow down considerably over the next few quarters. This is due to a slowdown in new tender issuances during late 2016 and early 2017. As per our estimates, total utility scale capacity addition in 2018 would be only 6.3 GW (-25% over 2017). Activity should pick up again in 2019 with about 8 GW of new capacity expected to come online in the year.

FULL STORY

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