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Two Major Problems Of Tariffs And Power Grids Have Led To Further Drag On India's Solar Bidding.
- Jun 14, 2018 -

According to industry sources, solar bidding will be "further dragged" because of the uncertainty of the 70% solar equipment tax and the uncertainty of developers' concerns about the ISTS.

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Two major problems of tariffs and power grids have led to repeated delays in India's solar bidding.

Last month, India's state power giant NTPC delayed bidding for 2000 megawatts of solar energy from May 21st to the first week of June. However, the company did not continue tendering even in the first week of this month.


So far, the issue of interstate transmission through interstate transmission systems has not been resolved, and discussions with the new energy and renewable energy department (MNRE) are still under way. In addition, taking into account the uncertainty of 70% of the protection tax, solar bidding will be further delayed, "an industry insider said.

"India solar company (SECI) launched a bid for 125 megawatts of solar power projects last week in Uttar Pradesh, the source said. Because of developers' attention to the above two major issues, the project ended up bidding for 3.34 rupees per unit of 3.34 rupees, but the price was higher than the previous cost."


According to the road map compiled by the Ministry of energy and renewable energy, 3.5 gigawatts of solar energy will be invited in June. The government plans to tender 34 gigawatts solar energy in the current financial year.


Considering that the India government plans to achieve 100 gigawatts solar capacity by 2022, timely bidding is very important. Recently, the India government has even raised the target of renewable energy installed capacity.


But the industry said: "unless these two controversial issues are resolved, otherwise the solar bidding work is difficult to continue, if the implementation of the safeguards, will further improve the tariff, leading to the cost advantage of solar energy will not exist."


The trade relief Department of the Department of trade (DGTR) decided to hold public hearings in June 26th to open a public hearing on the investigation of the liability for solar cells.


Earlier, the General Administration of protection, which is currently included in the DGTR, has recommended a 200 day tariff on imported solar cells.


Solar cells are electronic devices that convert sunlight directly into electricity, mainly from China, Taiwan, Malaysia and Singapore. These countries and regions accounted for more than 90% of the total solar cell imports.


In May 15, 2018, the Central Electricity Regulatory Commission of the power regulatory authority approved the procedures for granting interconnection through interstate transmission systems. But insiders say the problem remains to be resolved.


Currently, the SPDA has written to MNRE to request an extension of the solar bidding until the issue of connectivity through the interstate transmission system has not been resolved. Developers also raised this question last month at a tender meeting with MNRE and SECI officials.