According to the Ministry of New and Renewable Energy (MNRE), the government will soon invite developers to bid for 750 MW of solar capacity. Out of which 300 MW of projects will be required to use locally made solar cells and panels. This plan aims to close a loophole before the next solar power auction to stop companies from importing thin-film panels from overseas suppliers for India projects. Until now it was not mandatory for the solar project developers to source thin-film technology locally for the projects auctioned by the government. Therefore, this time MNRE has decided to change the rules for domestic content requirement to include thin-film.
The government will also extend grants to the solar industry for the first time, offering as much as US$ 348 million to cover 30 per cent of upfront project costs. Previously, it supported the solar industry by buying power at above-market rates. The government is offering Rs 25 million per MW to projects that will range in capacity from 10 to 50 MW, according to auction guidelines released recently. Developers will submit bids specifying the amount of funds they seek, and those needing the least will win.
