Power News We love to talk!

JUN 11 2018

Solar auctions to delay further amid concerns over duty, ISTS issues

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 11th JUN 2018

 

Solar auctions would be "dragged further" amid uncertainty about imposition of 70 per cent safeguard duty on solar equipment and concerns among developers over grant of inter-state transmission system (ISTS), according to industry sources.

Last month, state-run power giant NTPC had deferred auction of 2,000 MW of solar capacity to the first week of June from May 21. The company, however, did not go ahead with this auction even in the first week of this month.

"The issue related to grant of connectivity through inter-state transmission system has not been resolved so far and discussion with the Ministry of New and Renewable Energy (MNRE) is still on. Besides, there is uncertainty over 70 per cent safeguard duty under consideration of the government. Therefore, solar auctions would be dragged further," an industry source said.

The source said, "Solar Energy Corporation of India (SECI) has conducted auction for 125 MW of solar capacities for solar parks in Uttar Pradesh last week where successful bidder got the project at a tariff of Rs 3.34 per unit due to developers concerns over the two issues and other reasons."

According to the road map prepared by the Ministry of New and Renewable Energy, auctions of 3.5 GW of solar capacities are planned in June itself. The government has planned 34 GW of solar capacities auction in the current fiscal.

The timely auction is important in view of India's ambitious target of having 100 GW of solar energy by 2022. The government is hopeful of overachieving its solar energy target at 113.49 MW by 2022 as compared to envisaged 100 GW.

But industry sources said, "The solar auctions would not happen unless these two contentious issues are resolved. If safeguard duty is implemented, it will further increase tariffs and discoms will not want to purchase solar power." The Directorate General of Trade Remedies (DGTR), under the commerce ministry, has decided to hold a public hearing on June 26 on safeguard duty investigation of solar cells.

Earlier, the Directorate General of Safeguards, which is now subsumed in DGTR, had recommended imposition of duty on imports of solar cells for a period of 200 days.

Solar cells, electrical devices that convert sunlight directly into electricity, are imported primarily from China, Malaysia, Singapore and Taiwan. Imports of the cells from these countries account for more than 90 per cent of the total inbound shipments in the country.

Power regulator Central Electricity Regulatory Commission approved the procedure for grant of connectivity through inter-state transmission system in its order on May 15, 2018. But the industry source said that the issue is still to be resolved.

The Solar Power Developers Association (SPDA) had written to the MNRE to extend solar auctions till the issue related to grant of connectivity through inter-state transmission system is not resolved. Developers had also raised the issue in the pre-bid meeting with MNRE and SECI officials last month.

Tags

Uttar Pradesh TOTAL Transmission System Renewable Energy Solar Energy Central Electricity Regulatory Commission Tariff China NTPC Ltd Ministry of New and Renewable Energy Energy Electricity Regulatory Commission Power Electricity India solar power Solar Solar Energy Corporation Of India

Related News

  • Power utilities: eye on key milestones helped investors overcome subdued Q3  Read more
  • NTPC to centralise vendor procurement system  Read more
  • BHEL commissions captive solar photo voltaic power plant in Trichy  Read more
  • JSERC reviews JUSCOs tariff order for 2013-14  Read more
  • Vision to generate 200 Mw solar power in airports: Civil Aviation minister  Read more
  • 25 per cent of Tata's power generation can be from renewable sources: Chairman Cyrus Mistry  Read more
  • Discoms seek more time to file tariff plan for next fiscal  Read more
  • Breakdown in power supply irks Thermal Nagar residents  Read more
  • International Solar Alliance to become legal entity on December 6  Read more
  • Mahagenco invites bids to appoint consultants for solar projects  Read more