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India's Solar PV Market Will Benefit From China's New Photovoltaic Policy
- Jun 20, 2018 -

China, the world's largest solar energy market, has announced a new global photovoltaic policy. The industry believes that the Chinese government's photovoltaic policy will benefit neighboring India.

India has set the goal of achieving 175GW renewable energy capacity by 2022, of which 100GW comes from solar energy. According to the latest news, the India government has raised the target of renewable energy capacity to 227 gigawatts in 2022.

However, the total solar energy capacity of the country is 22 gigawatts. As China slows the solar industry, this could lead to a decline in the global cost of solar panels. Nearly 90% of India's solar panels come from imports, most of which are from China.

Amit Kumar, PWC's clean technology partner, said, "if the Chinese market slows down, that means the region's manufacturing capacity will be available to the global market, which will have an impact on reducing costs. If availability of solar cells increases, costs will fall and tariffs will drop, this is a positive sign. "

Last year, solar energy projects accounted for nearly 40% of India's new energy generating capacity. India's domestic solar electricity prices also dropped, a record low, and solar energy has been cheaper than coal electricity.

Recently, the government of India has upgraded the renewable energy installed capacity of 175 GW to 227 GW by the end of 2022 by the end of the plan, which means that the proportion of renewable energy supply in India will increase to 28%.

At present, India has increased the target of more than 70 gigawatts. However, if linear scale assessment is used to assess the progress so far, this trend seems to indicate that the country's development in renewable energy is still lagging behind. However, the growth of renewable energy is not linear.

Over the past few years, India's renewable energy prices have been quite high due to high financial costs. Now these financing costs have dropped sharply, and renewable energy investment is accelerating. In a recent statement to the media, the new energy and renewable energy department (MNRE) wrote, "new opportunities have emerged and a new business space has been created. India has begun to use foreign stock exchanges as a source of funds. India is becoming the most popular destination for investment in renewable energy. "

Of course, the world's renewable energy prices are also declining, thereby improving this goal. RK Singh, the national electricity and new energy and renewable energy minister, recently said at a news conference: "India's current renewable energy capacity is 70Gw, and we will finish the 175GW target by 2022." New plans like offshore wind power and floating solar energy will help us overfulfill our current goals. "

If India achieves this new goal, it will only lag behind China and the United States in terms of renewable energy installed capacity, ranking third in the world. The goal is the perfect timing, because the growth of renewable energy in China is expected to decrease due to the reduction in subsidies this year.

India's energy demand continues to grow, and renewable energy is able to meet this demand at the best possible price. Unfortunately, every year India increases its thermal power (fossil fuel power generation), but the good news is that its utilization rate is decreasing. With the old renewable energy target, the utilization rate of thermal power plants is estimated to be 57%. But the formulation of new targets means that this proportion will continue to decline.