As per BTI's report, India’s total installed PV capacity till June 2019 was over 34 GW, and the country is sitting on a more than 19 GW large pipeline. Even as things look promising in the next two quarters, analysts wonder if the issues facing the market now will be resolved for good. (Source: Bridge To India)
- BTI report on Q2/2019 solar PV additions in India says till June 30, 2019 the country had total installed solar power capacity of 34.15 GW
- Utility scale solar accounts for 27.93 GW of this while rooftop solar adds 4.96 GW and off-grid solar 1.26 GW
- Another 19,698 MW has been allocated to project developers and is at various stages of development with more than 13 GW expected to be added over the next 12 months
- Despite such big numbers, investor confidence is shaken with auction cancellations, tender deadline extensions, financial and infrastructural reasons
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India’s cumulative installed solar power capacity till June 30, 2019 reached 34,154 MW, according to Bridge to India’s (BTI) estimates in its report India Solar Compass Q2 2019. This is on the higher side compared to numbers shared by the country’s Ministry of New and Renewable Energy (MNRE), which reported that till July 2019 over 30 GW were added (see 30 GW: India Installed PV Capacity Till July 2019).
According to BTI, 27.93 GW of this total have been contributed by utility scale PV, with rooftop solar and off-grid solar adding 4.96 GW and 1.26 GW, respectively.
Of the total commissioned, state government tenders have added the major part with over 13 GW, followed by 10.54 GW through central government tenders. India’s total PV project pipeline as on June 30, 2019 stood at 19,698 MW that has been allocated to project developers and at various stages of development. The Central government allocated 11.98 GW which is the largest share of this pipeline.
Over the next 12 months, BTI says 13,519 MW of capacity is due for completion but there could be ‘significant slippages’ due to land and transmission bottlenecks, tight liquidity in the financial system and increase in input costs affecting project viability. For these reasons utility scale solar capacity installations slowed during Q2/2019 adding only 1,104 MW compared to 1,885 MW in the previous quarter. However, the report calls rooftop solar a bright spot with estimated capacity additions of 515 MW in the reporting quarter, increasing its share in total capacity additions to 28% in FY 2018-19, from 6% registered 5 years back.
Even though 10,296 MW was tendered in Q2/2019, the time was fraught with cancellations, undersubscriptions, deadline extensions for reasons ranging from poor site conditions, unavailability of land and transmission connectivity and low ceiling tariffs. These reasons have marred investor sentiment which is further compounded by Andhra Pradesh government’s move to renegotiate power purchase agreements (PPA) (see Andhra Pradesh’s 5.2 GW RE Projects Under Stress). While BTI analysts expect better times for the Indian solar market in the third and fourth quarters of the year, there are again clouds expected for the next fiscal year.
“MNRE policy to adopt an Approved List of Module Manufacturers (ALMM) to address quality issues in solar components is likely to create uncertainty in the sector over the next year. All installations starting April 2020 need to comply with this policy,” according to the BTI report. “There are concerns both about MNRE’s capacity to complete the necessary certification process in time and willingness of international as well as domestic manufacturers to share requested operational and financial information.”
The India Solar Compass Q2 2019 report can be purchased online at BTI’s website.