Solar sector to see capacity addition of 5.7 GW in FY17: Icra

[DRDO KALI 10000]

The country's solar sector is expected to see capacity addition of 5.7 GW in the current fiscal, even though aggressive tariff bids may cast a shadow on profitability of producers, rating agency Icra said today. | 1 Comments The country's solar sector is expected to see capacity addition of 5.7 GW in the current fiscal, even though aggressive tariff bids may cast a shadow on profitability of producers, rating agency Icra said today. "Going by the project awards and tenders floated as on date, about 5.7 GW capacity addition is expected to happen in FY17. But actual capacity addition will hinge on timeliness in the award of projects under state and central policies and the subsequent signing of PPAs," Icra Senior Vice-President Sabyasachi Majumdar said. The rating outfit estimated that assuming a 7 per cent annual demand growth, an extra 78 GW in solar energy capacity would be required over the seven-year period (FY16-FY22) to hit the revised solar RPO (renewable purchase obligation) target of 8 per cent by 2021-22. Icra, in a report, however, warned that the tariffs being quoted by successful bidders are very aggressive and the viability of such competitive bids hinges on keeping cost of modules and financing within budgeted levels. Amendments in the solar RPO norm from 3 to 8 per cent by FY22 in the national tariff policy is a key positive for the solar energy sector, it said. "This should facilitate capacity addition in line with the revised capacity target of 100 GW by FY22 (earlier 22 GW) under the National Solar Mission (NSM)," it said. Recently, Union Power Minister Piyush Goyal said the country already achieved 19,000 MW solar capacity by 2015-16, five years ahead of the original target, and the 20,000-MW target will be achieved by the end of this fiscal. Tariff competitiveness has significantly improved with state-owned power utilities and the nodal agency under the NSM adopting the competitive bidding route in 2015. Tariffs quoted by solar producers over the past six months have been low, ranging between Rs 4.34 and Rs 5.1 per kWh, and are at a significant discount to the normative solar tariff of Rs 7.01 stipulated by the regulator CERC for FY16. "As these competitively bid tariffs remain aggressive from credit perspective, viability of such competitive tariff bids hinges on structuring of debt with longer tenures, competitive funding costs, and the ability of IPPs to keep the cost of modules within the budgeted levels," warned Majumdar. According to Icra, with tariff at Rs 5/kWh, project cost at Rs 5.5 crore/MW, cost of debt funding at 11.5 per cent over 12 years, and PLF at 19 per cent, the project IRR for a solar project will remain below 10 per cent. From a regulatory perspective, the report warned that the sector continues to face major regulatory challenges, particularly on meeting the new RPO norms.

Read more at: Solar sector to see capacity addition of 5.7 GW in FY17: Icra - Moneycontrol.com

 

[Ankit Kumar 002]

5.7GW....
Now that's some really serious work and needs to be appreciated.

Piyush Goyal, Along with Nitin Gadkari and Suresh Prabhu are building India at a great pace.

@Oscar Sir I think this topic is not related to defence, please move this to a suitable section. Thanks.

 

[C130]

5.7GW....
Now that's some really serious work and needs to be appreciated.

Piyush Goyal, Along with Nitin Gadkari and Suresh Prabhu are building India at a great pace.

@Oscar Sir I think this topic is not related to defence, please move this to a suitable section. Thanks.

I just can't get behind solar power when you take into account the capacity factor and efficiency you are just better off with hydro,wind for renewable, and coal and natural gas plants.

that 5.7GW is more like 2GW of power.

 

[satishkumarcsc]

I just can't get behind solar power when you take into account the capacity factor and efficiency you are just better off with hydro,wind for renewable, and coal and natural gas plants.

that 5.7GW is more like 2GW of power.

Coal and natura gas are more polluting....we already are doing good with wind energy, Hydroelectric uses huge grid networks. The thing about solar power is you can install it anywhere and everywhere in southern part of India and hence uses less cabling and network of grids. And sunlight is really adequate.

 

[C130]

Coal and natura gas are more polluting....we already are doing good with wind energy, Hydroelectric uses huge grid networks. The thing about solar power is you can install it anywhere and everywhere in southern part of India and hence uses less cabling and network of grids. And sunlight is really adequate.

I agree that coal and natural gas causes more pollution than solar, but solar is just so expensive and inefficient.


could be building a dozen ultra critical coal plants and natural gas plants (that pollute lot less than coal) you need power if you want to be on the same level as the U.S and China.

I just think solar is still another decade or two away from being truly affordable and efficient.


i am talking about large scale solar use not for like your own house which I think it's alright. it'll pay it's self off in 30 years though

 

[Ankit Kumar 002]

Coal and natura gas are more polluting....we already are doing good with wind energy, Hydroelectric uses huge grid networks. The thing about solar power is you can install it anywhere and everywhere in southern part of India and hence uses less cabling and network of grids. And sunlight is really adequate.

Further we have an unique plan which we are now implementing , to use rivers and Canals for setting up solar power plants. It also helps to reduce water loss due to evaporation and reduces the problems for land acquisition.

 

[satishkumarcsc]

I agree that coal and natural gas causes more pollution than solar, but solar is just so expensive and inefficient.


could be building a dozen ultra critical coal plants and natural gas plants (that pollute lot less than coal) you need power if you want to be on the same level as the U.S and China.

I just think solar is still another decade or two away from being truly affordable and efficient.


i am talking about large scale solar use not for like your own house which I think it's alright. it'll pay it's self off in 30 years though

If we dont start no...we can never fulfill the needs of Indian population.

In case of large scare I rather prefer Nuclear reactors over coal and natural gas. The US has less population compared to India so the emissions that we produce must be scrutinized more.