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EDF Renewables Commissions 110 Megawatts Of Solar In Israel

by Joshua S Hill October 30, 2018

French renewable energy group EDF Renewables announced the commissioning of five separate solar PV facilities in Israel last week, worth a total of 110 megawatts (MW).

Pduyim solar farm

A world leader in renewable electricity, EDF Renewables announced the commissioning of five solar PV plants worth 110 MW last Wednesday, projects the company hopes will help it meet the objectives of parent company EDF Group’s CAP 2030 plan which aims to double its global renewable energy capacity between 2015 and 2050 by up to 50 gigawatts (GW).

The five solar plants commissioned in Israel include the 60 MW Mashabei Sadeh project, the 14 MW Pduyim project, the 13 MW Mefalsim project, the 7 MW Kfar Maimon project, and the 7 MW Bitha project. All are located in the Negev Desert in southern Israel and consist of approximately 307,400 solar panels spread across close to 130 hectares.

“The commissioning of these photovoltaic power plants reinforces EDF Renewables’ leading position in Israel, where we already have over 25% of the installed capacity from renewable energy sources,” said Bruno Bensasson, EDF Executive Vice-President in charge of Renewable Energies and Chief Executive Officer of EDF Renewables. “Through its CAP 2030 strategy in France and globally, EDF is delighted to contribute here to the fight against Climate change in Israel, with strong ambitions in solar, storage, and wind power.”

Four of the five solar PV facilities were won in a mid-2017 tender at the lowest-ever tariff awarded in Israel of €47 ($53) per MW-hour (MWh), while the fifth project, the 60 MW Mashabei Sadeh solar power plant, was acquired at the project stage in a separate deal in 2017. The five projects now bring EDF Renewables operating solar projects in Israel up to 17 worth nearly 300 MW.

EDF Renewables currently boasts 28 GW worth of installed renewable energy capacity and will look to increase that to over 50 GW by 2030 with a mixture of wind, solar, marine, and hydro electricity.

October 30, 2018 0 comment

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Solar Bids In India Decline After Duty Reprieve

by Saurabh Mahapatra May 16, 2018

written by Saurabh Mahapatra

Just weeks after the Indian government exempted import solar modules from custom duties, the impact of the decision was seen in the substantial fall in tariff bids.

The latest auction completed by India’s largest power generation company — NTPC Limited — for a large solar power park in southern India saw developers reducing tariff bids by around 9% compared to bids seen in auctions just before the custom duties were repealed.

NTPC Limited had offered developers 750 megawatts of capacity at Ananthapuram solar power park in the state of Andhra Pradesh. As per the tender conditions, developers could bid for a minimum capacity of 50 megawatts and maximum of 750 megawatts.

Against an offered capacity of 750 megawatts, a total of 11 developers submitted bids to set up 3,500 megawatts of capacity. Nine of these developers submitted bids to develop 250 megawatts each, one proposed to set up 500 megawatts, while one another bid for the entire 750 megawatt capacity.

The oversubscription of the tender is good news for the Indian solar power market. Auctions for at least two large tenders were postponed multiple times over the last few months as they did not receive enough bids to cover the entire capacity on offer.

Karnataka Renewable Energy Development Limited (KREDL) had offered 1,200 megawatts of capacity at Pavagada solar power park. Even after multiple postponements the tender managed to attract bids for just 550 megawatts. These projects, won by ReNew Power, Azure Power, and Avaada Energy, received bids of around Rs 2.93/kWh (4.35¢/kWh).

The state of Gujarat also auctioned 500 megawatts of capacity earlier this year. Bids for these projects ranged from Rs 2.98 to Rs 3.06/kWh (4.42¢ to 4.54/kWh). Another state, Maharashtra, offered 1 gigawatt of capacity last year and had been forced to postpone the auction multiple times as it did not receive enough bids to cover the entire capacity. Gujarat cancelled the auction, stating that the tariff bids were high. It plans to hold the auction again soon.

Now, finally, Maharashtra has received enough bids to cover the entire capacity on offer. A total of eight developers have proposed to set up 1,450 megawatts of capacity. The actual auction is expected to take place soon now.

In the NTPC tender for Ananthapuram solar power park, Sprng Energy, Ayana Renewable, and SB Energy secured rights to develop 250 megawatt capacity each. These companies won these projects at tariff bids of Rs 2.72-2.73/kWh (4.02-4.05¢/kWh). That is a decline of around 7% compared to KREDL bids and 11% compared to Gujarat bids.

May 16, 2018 0 comment

Solar $Solar Policy

India Plans 20 Gigawatt Solar Tender To Circumvent WTO Domestic Content Restrictions

by Saurabh Mahapatra May 16, 2018

written by Saurabh Mahapatra

India is looking at ways to support domestic manufacturers of solar cells and modules as it aggressively increases installed capacity.

According to media reports, the Ministry of New & Renewable Energy plans to auction 20 gigawatts of solar power capacity with a clause that would give preference to companies that have manufacturing facilities. The ministry may opt for several different tenders with a cumulative capacity of 20 gigawatts.

Details of the terms and conditions of these tenders will be out once the Solar Energy Corporation of India (SECI) issues the tender. However, this could be the make-or-break moment for solar equipment manufacturers in India.

The Indian government has attempted several measures to make sure that Indian manufacturers benefit from the huge capacity addition targets.

Failed Incentives

The Indian government did manage to auction a few hundred megawatts of capacity under the Domestic Content Requirement (DCR). During the early days of the National Solar Mission, some tenders had a clause that required developers to use only Indian-made solar modules.

Neither the central nor state governments are allowed to float such tenders anymore after the US successfully challenged DCR and won a ruling from the World Trade Organisation in September 2016.

The MNRE also proposed a financial support scheme for solar manufacturers. The ministry planned a $3 billion relief package for manufacturers. The plan included various financial incentives, including subsidised interest rates. The plan, however, was disapproved by the Ministry of Finance.

Duties on Imported Modules

India first considered levying anti-dumping duties against imported solar cells and modules in 2013. The Ministry of Commerce and Industry, after internal investigations, proposed anti-dumping duties to Ministry of Finance. The new government that came to power in May 2014 rejected these recommendations.

Last year, fresh investigations were launched into imports from China, Taiwan, and Malaysia. These investigations were recently terminated after the Indian Solar Manufacturers Association (ISMA) withdrew its petition. ISMA will likely submit a fresh petition soon.

The Indian government also levied custom duties on solar modules for a brief period. These duties were recently lifted following re-classification of solar modules. Imposition of safeguard duties has also been recommended by a government agency.

Major Players

Such a tender will likely benefit the largest solar cell and manufacturers in India that also have project development capabilities. These include Adani Energy, which already operates India’s largest solar power project, and Tata Power Solar, which acquired around 1 gigawatt of solar and wind energy capacity from Welspun Energy.

May 16, 2018 0 comment

Solar $Solar Projects

Invenergy Signs PPA With Georgia Power For 160 MWac Solar Project

by Jake Richardson May 14, 2018

written by Jake Richardson

Invenergy has signed a power purchase agreement with Georgia Power for electricity generated by the 160 MWac Camilla Solar project which is currently being developed. The project is scheduled to begin operation at the end of 2019, and it will be one of the largest solar power plants in Georgia. (The location is Mitchell County.) Through the PPA, Georgia Power will buy electricity from the solar plant until 2050.

“Invenergy is pleased to work with Georgia Power to help them deliver clean, reliable solar energy to their customers. As North America’s largest privately-held renewable power provider, Invenergy is proud to help leading utilities like Georgia Power take advantage of the economic value, energy diversity and sustainability benefits that solar energy provides,” explained Invenergy EVP and Chief Commercial Officer Jim Shield.

Donya Mansoubi, the spokesperson for Invenergy, answered some questions for Cleantechnica.

1. The project will generate more than $12 million in local economic development in its first 10 years of operation through tax payments, lease payments to participating landowners, and wages and benefits for employees. Do you have a breakdown for these lease payments? Are they going to landowners? If so, how many, and about how much will they receive?

The payments are a combination of the tax payments to Mitchell County, lease payments to landowners, and wages to the employees at the facility.

2. Will the 400 or so construction workers be locally sourced?

Invenergy contracts out the construction. Our contractors typically source as much local labor for the projects as they can find.

3. How many employees will remain after the construction is completed, and what will these jobs be?

3-4 operational jobs are likely to be sourced locally.

4. Why was Mitchell County chosen as the site?

The County established clear rules and regulations regarding the permitting and taxation of solar development, creating a stable environment for development. Additionally, the area has both transmission lines running through it along with some of the best solar resource in the state of Georgia.

5. When completed will it be the largest PV solar power plant in Georgia?

It will be the second largest in the state.

6. Are you looking at other similar solar projects to construct in this state?

We are looking to continue investing in solar development across Georgia and the southeast more broadly.

That solar power is growing in Georgia is excellent news; the state has abundant sunshine to convert to electricity.

Image Credit: Invenergy

May 14, 2018 0 comment

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India’s Largest Solar Cell Manufacturer Charts Aggressive Growth Plan

by Saurabh Mahapatra May 10, 2018

written by Saurabh Mahapatra

India’s largest solar cells and modules manufacturer, Mundra Solar PV, has announced plans to aggressively increase its production capacity over the next few years.

A subsidiary of Adani Enterprises, Mundra Solar PV is reported to have assembly lines to produce 1,200 megawatts each of solar cells and solar modules. An analysis of data reported by manufacturers to the Ministry of New and Renewable Energy last year showed that Mundra had a share of over 40% in India’s total installed solar cell production capacity and a 15% share in the total installed solar module production capacity.

Now, Mundra has announced plans to increase the solar cell and module production from 1,200 megawatts each to 3,000 megawatts each over the next 2-3 years. It also eyes a $1 billion turnover by the same time.

Mundra has announced these highly aggressive plans at a time when other Indian solar cell and module manufacturers are struggling to do business. A major manufacturer — Moser Baer Solar — has suffered bankruptcy and will soon receive bids for takeover. Other manufacturers, through the Indian Solar Manufacturers Association, have filed petitions with the government to levy safeguards and anti-dumping duties on imported solar cells and modules.

India also had to shut down its policy of the mandatory use of Indian-made cells and modules for certain projects. The only manufacturers that are seeing some business in India are those that have a project development company to feed the modules. These include Tata Power Solar and Mundra itself.

Mundra Solar PV, in the past, has also revealed plans to invest in production of raw materials for solar cells. The company already operates silicon smelters. It signed a memorandum of understanding with China’s East Hope Group wherein East Hope would invest a total of $300 million to develop various facilities include solar equipment manufacturing, chemicals, and aluminium.

Mundra will likely have to export a large volume of its solar cells and modules in order to achieve the target turnover of $1 billion. Adani is looking to set up solar power projects in Australia and has shown interest in developing projects in other countries as well. Any anti-dumping duties or safeguards duties imposed on imported solar cells and modules would also work in Mundra’s favor.

May 10, 2018 0 comment

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SunPower Reports Topsy-Turvy First Quarter Earnings

by Joshua S Hill May 9, 2018

written by Joshua S Hill

Despite its recent acquisition of embattled solar manufacturer SolarWorld Americas, SunPower this week reported mixed results in its first quarter financial results, in which it succeeding in narrowing its net loss and beating earnings expectations, but could not promise much in the way of strong guidance.

It’s been a rough few months for American solar manufacturer SunPower, with the company’s recent share price looking like an homage to the Swiss Alps. In SunPower’s fourth quarter and full year 2017 financial results published in February, the company announced revenues down 35% year-over-year and first quarter and full year 2018 revenues well below expectations , which it blamed, in part, on the impact of the imposition of a 30% tariff on all imported solar cells and modules in the US.

A week later SunPower announced that it would lay off an estimated 250 employees and incur restructuring costs of anywhere between $20 million and $30 million. The aim of the restructuring, as explained to the SEC, was to reduce operating expenses and overhead, while also focusing on improving the company’s profitability in the wake of the newly-announced US solar tariff.

On the flipside, however, GTM Research published figures in late March that revealed SunPower is the leading US commercial solar provider, supplying 231.2 megawatts (MW) of capacity in 2017, beating out Tesla which had 156 MW.

And, in a move which seemed to blow expectations apart, SunPower announced in the middle of April that it would acquire 100% of SolarWorld Americas — a company which was one of the two involved in the Section 201 trade case which led to the aforementioned 30% solar tariff. In a way, this was completely unexpected, but looked at from another point of view, it makes perfect sense, and follows in the wake of several other companies making moves to build up or create manufacturing capacity in the United States, thus circumventing any need for imposing a tariff on their products — especially for a company which relies on products made primarily in the Philippines and Mexico.

“We are thrilled to announce this agreement to acquire SolarWorld Americas, one of the most respected manufacturers of high-quality solar panels for more than 40 years,” said Tom Werner, SunPower CEO and chairman of the board, at the time. “The time is right for SunPower to invest in U.S. manufacturing, and SolarWorld Americas provides a great platform for us to implement our advanced P-Series solar panel manufacturing technology right here in our home market. P-Series technology was invented and perfected in Silicon Valley, and will now be built in SolarWorld Americas’ factory, helping to reshape solar manufacturing in America.”

Given the topsy-turvy nature of SunPower’s 2018 so far, then, it is not a complete surprise that its earnings for the first quarter of 2018 reflect some of that fluctuation and instability.

SunPower reported revenue (on a GAAP basis) of $391.9 million for the first quarter, well down on the $651.1 million reported in the fourth quarter of 2018, but up 19% on the $329.1 million taken in during the first quarter of 2017. The company’s gross margin stepped out of the red at 2.6%, compared to negative 2.1% in the fourth quarter and negative 13.9% in the same quarter a year ago.

Maybe most importantly, SunPower reported a much lower net loss than previously and against analyst expectations — a loss of $116 million for the first quarter, compared to a loss of $527.7 million in the fourth quarter and a loss of $219.7 million year-over-year.

“Our solid execution, ability to meet project deadlines and commitment to controlling costs enabled us to exceed our forecasts across all of our business segments,” said Tom Werner.

“Our strong first quarter performance was driven by solid execution in all markets while prudently managing expenses,” added Chuck Boynton, SunPower chief financial officer. “Financially, our efforts remain focused on improving cash flow, managing our working capital and executing on our restructuring initiatives. With our asset monetization plans on track and continued cost control, we are well positioned to retire our $300 million convert in June as well as having the resources to fund our growth plans this year.”

However, investors were still not hugely impressed, with the company’s share price falling slightly due to the light guidance provided for the second quarter. Specifically, SunPower provided guidance of revenue between $360 million and $410 million, a gross margin between 2.5% and 4.5%, and a net loss of between $125 million to $100 million.

May 9, 2018 0 comment

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JA Solar Reports Strong 2017 Financials, Ships Record 7,143 Megawatts

by Joshua S Hill May 7, 2018

written by Joshua S Hill

Shanghai-based solar manufacturer JA Solar reported long-delayed Fourth Quarter and Fiscal Year 2017 Results late last month, reporting record shipments of 7,143.1 megawatts (MW) for the full year, an increase of over 55% while revenue increased by over 25%.

In one of its last quarterly earnings as a publicly-listed company — after a move made in November to go private and exit the NASDAQ in a transaction worth approximately $362.1 million in cash — JA Solar reported strong fourth-quarter and full-year 2017 results, helping to hold the company’s share price stable.

JA Solar announced on the 17th of November that it had entered into a definitive agreement with an investor consortium headed up by company founder, chairman, and CEO, Baofang Jin, to take the company private in an all-cash transaction work approximately $362.1 million. The move is one of several by solar manufacturers to go private and de-list, including Trina Solar’s, the world’s second-largest solar PV manufacturer, delisting which was completed in March of 2017, and Canadian Solar’s December announcement that it too would be going private. Another company, ReneSola, also de-listed in October.

Announced on April 30, JA Solar published its Fourth Quarter and Fiscal Year 2017 Results, reporting a full month and a half later than it did in 2017. Total shipments for the fourth quarter amounted to 2,205.9 MW, up 55.2% year-over-year and up 35.2% on the previous quarter. Net revenue for the quarter came in at RMB 5.7 billion ($871.8 million), an increase of 42.1% year-over-year and 30.6% sequentially. Gross margin was 12.2%, down on both counts. Fourth quarter earnings per share were $0.08, missing market expectations by $0.04.

For the full-year 2017, total shipments amounted to 7.6 gigawatts (GW) — made up of 7,143.1 MW of modules and module tolling, 358.0 MW of cells and cell tolling to external customers, and 127.4 MW of modules to the company’s downstream projects. External shipments thus saw an increase of 52.4% from the 4.9 GW recorded in 2016. Net revenue was an impressive RMB 19.7 billion ($3.0 billion), compared to the RMB 15.7 billion ($2.4 billion) taken in during full-year 2016. Gross margin was 12.3%, down on the 14.6% recorded in 2016, while earnings per share were down to RMB 6.40 ($0.98), compared to RMB 14.58 ($2.24) in fiscal year 2016.

“Overall 2017 results were largely in-line with our expectations,” explained Baofang Jin, Chairman and CEO of JA Solar. “While net revenue grew 25% year-over-year, gross margin was negatively impacted by lower ASPs and rising material costs. Additionally, higher operating expenses led to a decline in operating profits and net income in 2017 when compared to 2016.”

“Despite the negative impact of the Section 201 trade case, we continue to invest in R&D to develop high-performance products to strengthen our competitive position. We are confident that our technologies, high-reliability products and balanced global footprint will continue to position JA Solar for a solid future.”

May 7, 2018 0 comment

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First Solar Reports Strong Start To 2018 As Series 6 Bookings Increase

by Joshua S Hill May 7, 2018

written by Joshua S Hill

Leading US solar manufacturer First Solar published its first-quarter earnings report late last month, depicting a strong start to the year with increased sales of $567 million and the commencement of Series 6 module production in April which, in turn, led to the company’s announcement of a new solar manufacturing plant in Perrysburg, Ohio.

First Solar announced its first-quarter earnings to the world on April 26 at the same time as it announced plans to build a new 1.2 gigawatt (GW) solar module manufacturing facility in Perrysburg, Ohio, which is expected to create 500 jobs and will focus on producing the company’s Series 6 thin film photovoltaic module — and which was heralded earlier in the year by company CEO Mark Widmar. The news is unsurprising given US President Donald Trump’s January decision to impose a 30% tariff on all imported solar cells and modules, refocusing solar manufacturers wanting to do business in the United States and incentivizing local manufacturing.

“Strong demand in the US for advanced solar technology, along with recent changes in US corporate tax policies, have encouraged our decision to grow First Solar’s US production operations,” said Mike Koralewski, First Solar’s Senior Vice President of Global Manufacturing. “State and local officials and JobsOhio have also worked with us to create a business-friendly environment that supported our objectives. These factors, combined with our own economies of scale in high tech manufacturing, make expanding US operations an attractive, win-win opportunity.”

While the new solar tariff is definitely playing its part in First Solar’s decision — and the decisions of other companies, such as JinkoSolar’s newly announced Florida manufacturing facility and SunPower’s decision to acquire SolarWorld Americas’ US-based operations — it was solidified in the success of its new Series 6 solar product. Year-to-date bookings for Series 6 modules has already reached 3.3 GW and the company also began shipping Series 6 modules in the first quarter.

“Our first quarter earnings and continued bookings momentum provide a positive start to the year,” said Mark Widmar. “Our earnings for the quarter were supported by the sale of both domestic and international projects, combined with efficient management of core operating expenses. Customer demand for our Series 6 product continues to be strong as evidenced by our year-to-date net bookings of 3.3GW_DC.

“We also achieved significant technology milestones this month with the start of Series 6 production in Ohio and the first commercial module shipments to systems projects. We remain focused on leveraging the advantages of our differentiated technology and applying our disciplined operating approach to achieve our near-term and long-term priorities.”

For the first quarter, First Solar reported earnings of $567 million, up $228 million on the previous quarter but well down on the spectacular $892 million reported in the first quarter of 2017. The increase in first-quarter sales was due primarily to the sale of international projects in India and Japan, as well as the sale of the company’s Rosamond project.

Earnings per share for the first quarter (on a GAAP basis) amounted to $0.78 compared to a loss per share of $4.14 in the fourth quarter, and $0.09 in the first quarter of 2017, and beating out analyst expectations by an impressive $0.85. Gross profit margin was 30.5% for the quarter, while the company’s cash and marketable securities declined slightly from $3 billion at the end of 2017 to $2.9 billion due to an increase in capital spending for additional Series 6 capacity.

First Solar barely modified its 2018 guidance, only shifting its Net Cash Balance down to between $2 billion and $2.2 billion, dropping its Operating Cash Flow down to between $0 and $100 million, and increasing its Capital Expenditures up to between $850 million to $950 million.

May 7, 2018 0 comment

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Global Solar PV Inverters Market To Decline From $6.3 To $3.7 Billion By 2022

by Joshua S Hill April 25, 2018

written by Joshua S Hill

Leading data and analytics company GlobalData has published new analysis this week which predicts that the global solar PV inverters market will decline from $6.3 billion in 2017 to $3.7 billion in 2022, attributed primarily to the fall in inverter prices rather than a drop in installation figures.

Fluctuations in the global solar market have been expected given the unprecedented technology cost reductions. New capacity expectations remain high, with current predictions ranging from 106 gigawatts (GW) to 113 GW. However, at the same time as experts expect global solar capacity to increase, they are similarly expecting market value to fall due to lower costs — or, in other words, we can do now do more with less money.

New analysis from GlobalData bears this out when looking specifically at the solar PV inverters market, which its analysts now expect will fall from an impressive $6.3 billion in 2017 down to $3.7 billion in 2022 — due primarily to a drop in inverter pricing. Between 2018 and 2022, GlobalData expects the solar PV inverters market to reach an aggregate value of $22.2 billion with an average annual value of $4.4 billion. Between 2017 and 2022 GlobalData expects the market to witness a negative compound annual growth rate of 10.15%.

Unsurprisingly, given China’s dominance of the global solar market, the Asia Pacific region led the solar inverters market in 2017 with a value of $3.75 billion, followed by the Americas with $1.71 billion and Europe, Middle East, and Africa combined (EMEA) with $0.89 billion.

Looking forward, however, GlobalData expects the Asia Pacific region’s (APAC) dominance to fade while the Americas will pick up speed between 2018 and 2022. Specifically, GlobalData sees APAC falling from 59% in 2017 to 38% in 2022, while the Americas will expand from 27% in 2017 to 41% in 2022. EMEA will see shallow growth from 14% to 21%.

“In terms of market value, China, the US, and Japan together held over 65% and led the global solar PV inverter market in the year 2017,” explained Subha Krishnan, Power Analyst at GlobalData. “The market developments in the top countries are largely due to economies of scale, emerging inverter technologies, and policy-based government and institutional industry.”

As to why the market is expected to see such a sharp drop-off, Subha Krishnan continues: “The solar inverter and module prices have declined for a variety of reasons, including but not limited to, persistent price pressure on equipment suppliers, the anti-dumping tariffs implemented by the US on Chinese modules, the euro and yen depreciation, and the downward adjustment of the minimum import prices. In the solar PV industry, buyers are price sensitive, creating persistent price pressure on equipment suppliers.”

April 25, 2018 0 comment

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As Solar Bids Firm Up, Indian State Cancels 500 Megawatt Auction

by Saurabh Mahapatra April 24, 2018

written by Saurabh Mahapatra

We recently reported that bids in a recent 500 megawatt solar power auction held in Gujarat jumped sharply. Now the utility that organized that auction has decided to cancel the project allocations and re-tender the capacity.

Gujarat Urja Vikas Nigam Limited, or GUVNL, has announced that it scrapped the latest 500 megawatt auction for solar power projects and shall re-tender the capacity soon. The reason cited for the decision is higher-than-expected bids.

GUVNL had floated a tender to allocate 500 megawatts of solar power capacity in February of this year. The results were announced last month, with the lowest winning wind at Rs 2.98 (4.6¢/kWh) while the highest winning bid was Rs 3.06/kWh (5.0¢/kWh).

The lowest bid was at a premium of 12.4% to the lowest bid in a previous solar power tender that GUVNL had conducted back in September 2017. The lowest bid is also higher than the all-time low solar bid of Rs 2.43/kWh (4.00¢/kWh) by 22.6%. With the cancellation of the auction, GUVNL also returns the performance bank guarantees to the successful developers.

GUNVL officials blame lack of clarity on various issues at the time of bidding. Developers continue to face uncertainty over issues of anti-dumping duty, safeguards duty, customs duty, and Goods & Services Tax (GST).

Anti-dumping investigation into solar cells and modules imported from China, Malaysia, and Taiwan has been prematurely terminated as the petitioner withdrew its case. The petitioner, Indian Solar Manufacturers Association (ISMA), is expected to file a fresh petition soon. Investigation into safeguards duty against imports from the same countries is ongoing even though the investigating agency recommended a 70% interim duty. The Indian government only recently clarified its stance on the customs duty being imposed on imported solar modules. These have now been re-classified into a category that does not attract any customs duty.

While no additional duties have currently been levied on solar power projects, the developers are clueless about the future and are hedging their risks by adding the financial impact of these duties in their tariff bids. To address these fears, the Ministry of New & Renewable Energy (MNRE) issued an amended model power purchase agreement with new clauses that makes developers eligible to charge additional tariffs in case any duties are levied in the future.

Since this clarification from MNRE and the decision on the customs duty came after the GUVNL auction was completed, it seems fair that developers are allowed to bid again with this new information at hand, which would likely reduce the tariff bids.

April 24, 2018 0 comment

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