According to Bridge to India, low tariffs, policy execution and lack of coordination between agencies have resulted in the fall of solar capacity addition
Bridge to India, a consultancy firm, has reported a 44 per cent fall in India’s solar capacity addition in comparison to the first six months of the last fiscal. Around 1,900 MW of capacity was added during April-September 2018-19. The solar power generation capacity had also been reported at 1,200 MW in September-end, which again accounted for 43 per cent lesser than the last financial year.
Challenges in the solar sector
Vinay Rustagi, Managing Director, Bridge to India cited policy and execution challenges as the main hindrances in the sustenance of the Indian solar market. He said that the sector was facing challenges in bidding processes for the auctions and capacity addition mainly due to the lack of coordination between the government agencies and developers. Land acquisition and transmission issues have also contributed to the slow progress.
The solar segment has also been facing problems due to low tariffs that are considered unviable for running the business. Solar developers have time and again raised this issue and the unresolved matter has resulted in a gap between the tenders issued and auctions completed.
The solar market in India
According to Bridge to India reports, the solar capacity accounted for about 27,400 MW by September-end. This includes 223,200 MW of utility-scale and 3,400 MW of rooftop solar projects apart from 800 MW off-grid solar. Rustagi was quoted saying that the expected total installation during 2018-19 stands at 4,100 MW, which is 55 per cent low than the previous year and short of Ministry of Renewable Energy’s (MNRE) 16,000 MW annual plan.
Companies like ACME and Softbank have emerged as the ones adding solar power generation capacities of 300 and 400 MW respectively and around 55 per cent of the solar capacity was set up in Rajasthan.
Rooftop capacity
Bridge to India has reported that the rooftop capacity in India has been growing at a rate of 70 per cent annually. This section has been said to be unaffected by the policy and execution challenges. The consultancy firm has projected a solar capacity of 67,000 MW by March 2022.
