India is taking a thriving leap in the renewable energy sources. Solar power is becoming one of the most prominent sections of energy supply in the country.
The Q2 report says that, “With over 7,149 MW, solar is now the leading new energy source in India. This is accounting for 39 per cent of total new power capacity additions in the first nine months of 2017”.
Indian electricity section has the huge contribution from solar sector energy. The survey data says that, it has the contribution of over 39% to the full solar capacity.
In the year 2016, solar energy capacity hovered around 4,313 MW. India has the total capacity of almost 14.7 gigawatts according to the data of September 2017.
Along with various fiscal reforms, Modi government also urged for a renewable energy practice in the country. By the year 2022, the government looks forward to install 175 GW sources of renewable energy. The previous year can said be as a flagship year in the power sector of India. The renewable sector had the benefit of capacity addition which will thrive even better this year.
The improvements are at such pace that, they are estimating, a cheaper solar power than than coal.
Also, diligent efforts towards solar power has also led to lower price slabs of solar power.
In the third quarter, solar projects of massive scale accounts for 1982 MW. In this total figure, domestic installations accounted for 12% which makes 265 MW.
Raj Prabhu (Mercom Capital CEO), said, “Even though the Indian solar market is on pace for a record-breaking year, the momentum has definitely slowed”.
The already completed solar projects accounts for 1000 MW. Yet, the industry is facing some issues which is heavily related to pricing. Chinese module pricing has seen a stark rise of 14 percent. Some other factors include the halfway infrastructure and recent application of GST.
There have been a decreased pace in the installations and auctions. The complete range of solar installations include a range of 9500 MW to 10000 MW. This is the data of the year 2017.
The global prices of solar module had seen a considerable fall in some last months. Yet, that is also gaining a pace up. This also suggests that, soon, solar rates will hardly see any downfall.
The official report also highlights the fact that, India will have a rising demand of coal by the year 2027. This analysis came from the report of IEEFA (Institute of Energy Economics and Financial Analysis).
The sector is also seeing some foggy trends which are:
The makers of solar energy are coming across some nagging factors. This includes, rising costs of solar panels, lower demand, inauspicious infrastructure and so on.
Supporting this fact, Raj Prabhu (CEO of Mercom Capital Group) says, “Even though the Indian solar market is on pace for a record breaking year, the momentum has definitely slowed down”.
To add to this scenario, there are nearly 1000 big scale projects, waiting to get the government’s aid. Also, the goods and service tax imposed on the components has created enough ambivalence.
The coming months will bring a major alteration in this sector. This will ask for anti-dumping duties. This will affect the imported panels.
While the yearly targets are much higher, the capacity has touched just 7,100 MW till this year end.
On this, the Mercom says that, “The fourth quarter of 2017 will be a crucial one for the solar sector in many ways, considering the anti-dumping recommendations due to be released, the uncertain trajectory of module prices, and low power demand”.