solar installations are forecast to be approximately 1,000 MW in 2014,
according to Mercom Capital Group, llc, a global clean energy communications
and consulting firm.
installations in India totaled 1,004 MW in 2013 compared to 986 MW in 2012. In
line with Mercom’s forecast, there was very little growth in installations
year-over-year. The firm’s detailed survey of the market revealed that growth
in installations might be elusive again in 2014 with numbers forecast to be
similar to 2012 and 2013.
to Mercom, there are several factors behind the slow solar growth. With a few
exceptions, there are no Jawaharlal Nehru National Solar Mission (JNNSM) PV
projects expected to come online until at least mid-2015. Most CSP projects
have stalled, state policies are all over the map, and as we have warned for some
time, India is now in a trade dispute with the U.S. in the World Trade
is time for developers to go directly to consumers, there is a large power-starved
market waiting to be served that looks better and better every day as diesel
prices keep climbing,” commented Raj Prabhu, CEO and Co-Founder of Mercom
Capital Group. The
United States recently announced its request for WTO dispute settlement
consultations with India regarding the Domestic Content Requirement (DCR) in
JNNSM Phase II projects. The United States claims that DCR rules discriminate
against U.S.-manufactured solar cells and modules. In Phase II, India has extended
DCR rules to include thin-film technology.
addition to difficulties with project economic viability stemming from reverse
auctions that have pushed down project margins, state policies have been delayed
frequently, there is no real Renewable Purchase Obligation (RPO) enforcement in
place, and national elections are fast approaching adding more uncertainty to
India’s solar market which could result in a slowdown in large-scale solar
Mercom stressed that India’s solar market potential remains as large as ever,
even in a slower-growing economy. As power shortages continue, peak shortage is
a critical problem that has stifled industrial growth, and back-up generation
is becoming increasingly expensive. The government of India announced partial
deregulation of diesel prices in January 2013, by incremental price increases of
~0.50 (~$0.008)/month for retail customers, as the government tries
to get subsidized diesel to a market-based price. This rise has resulted in a
~15 percent increase in diesel prices over the last 13 months, making solar a
very attractive option. Meanwhile, coal has not been the answer to the
country’s energy problems with its own supply shortage issues, and coal power
plants are increasingly dependent on imports as prices continue to climb.
case for solar in India will remain strong as long as the relevant policy goals
address power shortages that affect millions of Indians, businesses,
industries, and agriculture,” added Prabhu.
publishes quarterly updates on the Indian Solar Market. Subscribers of Mercom’s
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About Mercom Capital Group
Capital Group, llc, is a global communications and consulting firm focused
exclusively on clean energy and financial communications. Mercom’s consulting
division advises cleantech companies on new market entry, custom market
intelligence and overall strategic decision making. Mercom’s consulting
division also delivers highly respected industry market intelligence reports
covering Solar Energy, Wind Energy and Smart Grid. Our reports provide timely
industry happenings and ahead-of-the-curve analysis specifically for C-level
decision making. Mercom’s communications division helps clean energy companies
and financial institutions build powerful relationships with media, analysts,
government decision makers, local communities and strategic partners. For more
information about Mercom Capital Group, visit: http://www.mercomcapital.com. To get a copy of Mercom’s popular market
intelligence reports, visit: http://mercomcapital.com/market_intelligence.php.