Telangana successfully completed auction for 2,000 MW of grid connected, ground mounted solar projects in India in August 2015 and PPAs were expected to be signed by October 2015 (refer). However, there has been a considerable delay in signing these PPAs. The process appears to be stuck at senior levels in the state government purportedly because the subsequent auction processes completed by Punjab and NTPC (500 MW under National Solar Mission) received record low tariffs of INR 5.09 and 4.63/kWh respectively.
- Out of 1 GW of projects allocated under state policies in the past two years, nearly 40% of capacity is either significantly delayed or cancelled for various reasons
- Policy certainty and delays in state government solar initiatives are a major concern for the Indian solar industry
- Such delays and uncertainties are a huge setback to private sector confidence, especially affecting the plans of foreign investors and suppliers