{"id":21229,"date":"2018-09-17T12:23:07","date_gmt":"2018-09-17T06:53:07","guid":{"rendered":"http:\/\/www.greenworldinvestor.com\/?p=21229"},"modified":"2018-09-17T12:23:07","modified_gmt":"2018-09-17T06:53:07","slug":"recent-tender-cancellations-bad-omen-for-the-indian-solar-industry","status":"publish","type":"post","link":"https:\/\/iiec-india.org\/greenworld\/2018\/09\/17\/recent-tender-cancellations-bad-omen-for-the-indian-solar-industry\/","title":{"rendered":"Recent Tender Cancellations – Bad Omen For The Indian Solar Industry"},"content":{"rendered":"

Why are more and more solar tenders being canceled?<\/h3>\n

The pace of growth in solar installations has lately dipped in India. The country has been witnessing rounds of bid cancellations owing to tariff cap and uncertainty in the solar industry.<\/p>\n

As a result, India might expect some delays in achieving its solar installation target of 100 GW by 2022. A total of 9000 MW worth of solar\"Solar<\/a> bids were canceled by state and central solar agencies,\u00a0representing almost half of the 18,000 MW bids made till August 2018.\u00a0SECI\u00a0canceled tenders as it could not attract tariff bids lower than INR 2.44 per kWh, achieved for Rajasthan\u2019s Bhadla solar park project in May 2017. Capping the bids further worsened the situation. Recently, the\u00a0MNRE decided to cap the maximum solar power tariff<\/a> at\u00a0INR 2.50 and INR 2.68 per unit\u00a0for developers using indigenous and imported solar cells and panels.<\/p>\n

\n

“Capping solar tariff has resulted in poor response for SECI\u2019s\u00a0recent bid for 2,000 MW, which received bids of 3,300 MW. In comparison, NTPC attracted total bids of 6,300 MW against\u00a0a tender for 2,000 MW without a cap,” an executive of a solar developer said.<\/p>\n

Source: TOI Indiatimes<\/a><\/em><\/p>\n<\/blockquote>\n

\"solar\"<\/a><\/p>\n

As solar matures, developers are looking at more realistic bids, while government agencies are craving for rock\u00a0bottom prices. Unrealistically low bids have resulted in unnecessarily delaying the projects, and difficulty in procuring equipment and adequate financing. The country has already lost precious time and activity in the first half of this year due to uncertainty around safeguard duties. Last year’s module price fluctuations, PPA renegotiations,\u00a0and\u00a0uncertainties around trade cases had also resulted in weaker installation numbers and a feeble project pipeline for this year.<\/p>\n

Now, as per latest news,\u00a0India\u2019s finance ministry has finally imposed a 25% safeguard duty on solar cells and modules imported from China and Malaysia. This will further reduce installation activity till the time developers figure passing through the cost of projects. According to Mercom Capital market would freeze for 3-6 months following the safeguard duty imposition. Let us wait and watch if the Indian solar market has turned mature enough to handle these\u00a0speed breakers.<\/p>\n

<\/div>\n
<\/div>\n","protected":false},"excerpt":{"rendered":"

Why are more and more solar tenders being canceled? The pace of growth in solar installations has lately dipped in India. The country has been witnessing [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":5047,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","content-type":"","footnotes":""},"categories":[30,45],"tags":[582,1497,2464,5053,5984,6097],"class_list":["post-21229","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india-green-stocks-greeninvest","category-solar-renewable-energy-greeninvest","tag-bad-omen-for-the-indian-solar-industry","tag-do-recent-tender-cancellations-denote-bad-news-for-the-indian-solar-industry","tag-high-rate-of-solar-tender-cancellation-in-india","tag-solar-price-cap","tag-why-are-more-and-more-solar-tenders-being-canceled","tag-will-india-achieve-its-2022-target"],"_links":{"self":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/21229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/comments?post=21229"}],"version-history":[{"count":0,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/21229\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/media\/5047"}],"wp:attachment":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/media?parent=21229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/categories?post=21229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/tags?post=21229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}