Solar installations in India are forecast to fall in 2014 for the second straight year, amid delays to both national and state-wide PV incentive programmes.
add 750MW of PV capacity this year, its worst showing since 2011, as critical
statewide policies fail to live up to their promise, according to market
researcher Bridge to India.
905MW of new PV capacity in 2013, down 9% from its record performance of 982MW
of last year’s capacity came on line during the first quarter of 2013, as
projects under the first phase of the National Solar Mission were dragged
across the finish line.
final nine months of the year, India averaged just 166MW of quarterly
additions, as the pipeline of Phase 1 NSM projects dried up.
The NSM was
never expected to contribute much to India’s PV market in 2014, given the
timing of its bidding rounds.
reality has been further cemented by ongoing delays to the bidding deadline for
the 750MW “Phase 2, Batch 1” NSM round – recently postponed for the second time
to 20 January, from the original deadline in late November.
India predicts that zero capacity will be added under the NSM this year,
although significant investment decisions will be taken for projects to be
brought on line in 2015.
perceived importance to India’s solar ambitions over the coming years, less
than one-quarter of India’s 2.1GW of existing PV capacity has come under the
contrast, roughly half of the country’s capacity has been added under
state-wide policy schemes, most of it in Gujarat and Madhya Pradesh states.
statewide policies will suffer from ongoing “confusion and delays” this year,
says Bridge to India, weighing heavily on the country’s emerging solar
challenge for Indian developers is the rising cost of procuring modules, with
average prices up 15% in the past year due to the weakened rupee and
fast-growing demand in rival Asian markets like Japan and China.
750MW of capacity to be auctioned off in the NSM’s “Phase 2, Batch 1” round in
the coming months, half will be reserved for projects that have pledged to use
domestically made cells and modules.