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We plan to add 1,000 MW of projects in 2017

Manoj Kumar Upadhyay, Founder & Chairman, ACME Group, feels that demonetisation will not impact ’s ambitious targets as it will bring higher tax collection, improve business environment and transparency in the system.

ow was the year 2016 for solar in India? The year 2016 was phenomenal, with a growth of almost about 100 per cent from 2015. Total installed capacity of 4,346.82 MW Hof in December 2015, has nearly doubled to 8,513.23 MW as of November 2016 and sƟ ll rising. It’s important to menƟ on that whatever progress has been achieved in the solar power sector is only in the PV-based power plant due to declining cost. But no progress has been made in solar thermal sector, and the progress in the PV solar space is heavily reliant on import mandated to use of old Rs 500 and Rs 1,000 currency for of panels from diī erent countries. The reliance in import payment to public uƟ liƟ es bills, and people are using this is going to increase with no major breakthrough in window to clear their past due, helping in faster indigenous producƟ on of basic raw material required for payment to solar power developers. solar PV module, as the modules manufactured in India DemoneƟ saƟ on isn’t likely to have any adverse are assembled from imported components from impact on India’s ambiƟ ous targets as it will bring higher diī erent countries. tax collecƟ on, improve business environment and improve transparency in the system. /ƐĚĞŵŽŶŝƟƐĂƟŽŶůŝŬĞůLJƚŽŚŝƚ/ŶĚŝĂ͛ƐĂŵďŝƟŽƵƐƚĂƌŐĞƚƐ͍ However, there are some issues which need to be The current demoneƟ saƟ on drive can be viewed as a resolved. E.g. the sector is largely dependent on labour great leap from cash driven economy to a digital, availability. The payments from contractors to their cashless and transparent economy where every good labourers have largely been in cash. Though, we are sold and purchased will be accounted for and will ensuring them to go for digital payment. increase the tax base of the government. This will increase public spending on infrastructure, thereby tŚĂƚŝƐLJŽƵƌƉůĂŶŽĨĂĐƟŽŶĨŽƌƚŚĞLJĞĂƌ͍ giving a much needed boost to economic growth. Year 2017 will be one of expansion and consolidaƟ ng DemoneƟ saƟ on will also have twin beneĮ ts, Į rst help our leadership posiƟ on in the solar power sector. We in taming inŇ aƟ on and second in reducing bank lending have an operaƟ onal porƞ olio of about 500 MW with rate due to improved capital inŇ ow in the form of project under diī erent phase of implementaƟ on of deposit and curb on withdrawal. The reduced lending above 1.6 GW spread over 14 states. As new bids are rate will further cut the cost of Į nance for solar power being lined up from diī erent government agencies giving projects, hence reducing the cost of solar power ample opportunity for expansion and increasing our generaƟ on which will be in favour of consumers. The porƞ olio of solar power plant spread throughout the solar sector can be a beneĮ ciary of this demoneƟ saƟ on country. We have planned for adding up to 1,000 MW of drive as its lead buyers, i.e. power distribuƟ on projects in 2017. companies are witnessing a clearance of past dues and improvement in Į nancial posiƟ on as the government has - RAHUL KAMAT

January-March 2017 SOLAR TODAY J 29 cover story outlook 2017

The thrust for solar will continue in 2017 and will in fact mark India’s entry to the list of largest markets in the world. With large scale capacity allocations, increasing investment, falling module prices and declining tariffs, the sector is expected to grow 80 per cent more than 2016.

ear 2016 was a watershed enthusiasƟc parƟcipaƟon from all them to be posiƟve and bullish. year for solar sector in India, major independent power producers In terms of project development with more than 10.5 GW of (IPP’s) showed their commitment pipeline, ReNew Power is on top solar projects awarded by towards green and clean energy with a robust pipeline accounƟng for Yvarious agencies. Tariī’s nosedived mission. Overall, the year was a nearly 10 per cent of the market and more than 20 GW tendered mixed bag of low tariī’s making it during the year means a lot in terms diĸcult for developers to think of of the government’s commitment higher internal rate of return (IRR) towards the 100 GW mission. Also, but falling module prices allowed

18 J SOLAR TODAY January-March 2017 www.SolarToday.co.in

share. Adani is in a close second place QUICK BYTES with 9 per cent, while Greenko comes India will add a total of 9 GW of solar capacity in 2017. next with 8 per cent. Adani is poised to become the largest Indian solar There are 1,572 MW of utility-scale solar developer - both in terms of projects commissioned. operaƟ onal and under development Tenders for 3,000 MW of PV projects implemented by NTPC. projects in the near future. Apart from All 34 solar parks have received in-principle approvals. these, about 110 project developers have pipelines of 5 MW or more planned or under way. projects are currently under (PV – 680 MW), and other programs So far, India’s solar story suggests development and tenders for about (171 MW). that the mission envisaged by the 6 GW are sƟ ll to be aucƟ oned. That apart, under the JNNSM - current government is on track. These numbers can be Phase II Batch 2 which states speciĮ c According to reports, India’s solar substanƟ ated as there are 1,572 MW bundling scheme by the NaƟ onal market is set to grow at rate of 90 per of uƟ lity-scale solar projects Thermal Power CorporaƟ on (NTPC), cent in 2017, and to reach about 18 commissioned under diī erent phases the Ministry of New and Renewable GW in total capacity. Which means, of JNNSM͗ the MigraƟ on program Energy (MNRE) has announced the country will add a total of 9 GW of (PV - 48 MW and CSP – 2.5 MW), tenders for 3,000 MW of PV projects, solar capacity in 2017, including about Phase I Batch 1 (PV – 140 MW and implemented by NTPC through open 1.1 GW of rooŌ op solar installaƟ ons. CSP – 200 MW), Phase I Batch 2 compeƟ Ɵ ve bidding. The aucƟ on A total of about 14 GW of solar (PV – 330 MW), Phase II Batch 1 results for 2,750 MW (1,000 MW in , 650 MW in , 600 MW in Karnataka, 400 MW in I would expect 2017 to see rapid Telangana and 100 MW in UƩ ar Pradesh) growth in the industry, similar have been already announced. Incidentally, due to India’s loss to 2016. against the United States over the - Andrew Hines, Business Development domesƟ c content requirement (DCR) Head - South India, CLEANMAXX SOLAR issue, of the 2,750 MW, only 400 MW

is under the DCR category. Power

Solar Project Development Pipeline by State (MW)

<ĂƌŶĂƚĂŬĂ ŶĚŚƌĂWƌĂĚĞƐŚ dĞůĂŶŐĂŶĂ ZĂũĂƐƚŚĂŶ DĂĚŚLJĂWƌĂĚĞƐŚ dĂŵŝůEĂĚƵ :ŚĂƌŬŚĂŶĚ DĂŚĂƌĂƐŚƚƌĂ hƚƚĂƌWƌĂĚĞƐŚ WƵŶũĂď 'ƵũĂƌĂƚ WƌŽũĞĐƚƐ ƵŶĚĞƌĚĞǀĞůŽƉĞŵĞŶƚͲ Εϭϰ͘Ϯ't KĚŝƐŚĂ WƌŽũĞĐƚƐƚĞŶĚĞƌĞĚĂŶĚǁĂŝƚŝŶŐƚŽďĞ hƚƚĂƌĂŬŚĂŶĚ ĂƵĐƚŝŽŶĞĚͲ Εϲ͘ϯ't ,ĂƌLJĂŶĂ ŚŚĂƚƚŝƐŐĂƌŚ <ĞƌĂůĂ ,ŝŵĂĐŚĂů͙ tĞƐƚĞŶŐĂů ŶĚĂŵĂŶΘ͙ фϭϬϬDt WƵĚƵĐŚĞƌƌLJ ϭϬϬͲϱϬϬDt WƌŽũĞĐƚƐhŶĚĞƌĞǀĞůŽƉŵĞŶƚ ŝŚĂƌ ϱϬϬͲϭ͕ϬϬϬDt ƐƐĂŵ WƌŽũĞĐƚƐdĞŶĚĞƌĞĚǁĂŝƚŝŶŐƚŽďĞƵĐƚŝŽŶĞĚ ϭ͕ϬϬϬͲϮ͕ϱϬϬDt EĞǁĞůŚŝ ŚĂŶĚŝŐĂƌŚ хϮ͕ϱϬϬDt 'ŽĂ

Ϭ ϭ͕ϬϬϬ Ϯ͕ϬϬϬ ϯ͕ϬϬϬ ϰ͕ϬϬϬ ϱ͕ϬϬϬ

Source:^ŽƵƌĐĞ͗DĞƌĐŽŵĂƉŝƚĂů'ƌŽƵƉ;ĞĐϮϬϭϲͿ Mercom Capital Group (Dec 2016)

January-March 2017 SOLAR TODAY J 19 cover story outlook 2017 Haryana Power Purchase Centre, on behalf of Uttar HARYANA Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN), invited tenders for 150 MW of solar Currently there are about 195 MW of solar projects in projects. PPAs have been signed for operation under the state policy and about 152 MW which are expected to be 215 MW of projects are under construction. A RFP to set up commissioned in 2017. Th e Haryana 300 MW of solar PV projects through a reverse auction was Electricity Regulatory Commission UTTAR PRADESH announced in August 2014. PPAs were signed for 105 MW of (HERC) raised the incentive off ered projects in April 2015, with tariff s ranging between Rs 8.93 and by the state government for rooft op Rs 9.27 (~$0.1313-0.1363)/kWh. All 105 MW has been commissioned. Another RFP solar. Residential homes with rooft op to set up 215 MW of solar PV projects was announced in June 2015. 75 MW is solar installed will get an incentive of expected to be commissioned between Jan-March 2017 and the rest are expected ₹1 (~$0.0149)/kWh, four times the to be commissioned by June 2017. Th e state also submitted a proposal to the mNRE previous incentive of ₹0.25 to replace 60 MW of energy from conventional power projects with solar. (~$0.0037)/kWh.

purchase agreements (PPAs) have also been signed for 2,650 MW as of Th ere are about 558 MW of solar projects in operation under the Punjab State Policy and about 433 MW of November 2016, and these projects projects under construction. Under Phase II, around are expected to be commissioned in 280 MW of solar projects were signed in 2015 under three 2017. A 250 MW project in Andhra PUNJAB categories: 1-4 MW (29 MW), 5-24 MW (100 MW), Pradesh was re-tendered in October 25-50 MW (95 MW), and 53 MW of rooft op projects. Of this, 248 MW including the 53 MW rooft op projects have been commissioned. 2016, and is pending aucƟ on Th e remaining 32 MW is expected to be commissioned by early 2017. Punjab announcements. MNRE conĮ rmed also issued a RFP for 500 MW of solar in June. Bids were won by fi ve that since Tranche-I is complete, it will developers with tariff s ranging from Rs 5.09-5.98 (~$0.0749-0.0879)/kWh. soon launch Tranche-II which has been PPAs were signed in December 2015, and 131.5 MW of projects have been commissioned. Th e remaining projects are expected to be commissioned delayed due to the other opƟ ons by early 2017. being considered by the ministry in place of the bundling program. The Solar Energy CorporaƟ on of India (SECI) has called for tenders amounƟ ng to 2,510 MW under JNNSM Phase II Batch 3 - ‘State It is critical to ensure that quality SpeciĮ c VGF Program’. AucƟ on results is not compromised due to singular for 2,395 MW projects to be developed in Andhra Pradesh, Maharashtra, focus on lower tariffs. Karnataka, Chhaƫ sgarh and UƩ ar - Ashish Khanna, ED & CEO, Pradesh have been announced. According to sources, PPAs have been signed for 2,295 MW and there are expectaƟ on for around 500 MW of This includes tenders for 300 MW ROOFTOP SOLAR PROJECT projects to be commissioned by March with baƩ ery energy storage systems SECI released a countrywide 2017. A new tender is expected under (BESS) in Karnataka and Andhra list of winning bidders from the this batch for 500 MW of solar in the Pradesh. Of the 2,900 MW, 225 MW 500 MW solar rooŌ op aucƟ on. state of UƩ ar Pradesh, which will not is under the DCR category. AucƟ on The list reveals some of the lowest be in a solar park. results for 970 MW has been tariī s ever quoted for rooŌ op projects Meanwhile, under JNNSM Phase II announced as of September 2016, albeit including subsidies. According Batch 4: 5,000 MW of grid-connected and 225 MW of PPAs have been to a government policy document, solar PV projects on a build, own and signed in . These projects are based on the lowest project cost operate (BOO) basis with VGF beneĮ ts expected to be commissioned by quoted for each state by bidders, SECI are to be developed. Tenders for March of 2017. will provide the general category 2,900 MW projects have been issued Here, it can be boted that despite states a subsidy of 30 per cent of the (Gujarat – 400 MW, Odisha –300 MW, exisƟ ng volumes and opportuniƟ es, quoted project cost or Rs 22.5 Maharashtra – 500 MW, Andhra developers were expecƟ ng more from (~$0.3377)/W, whichever is lower. Pradesh – 750 MW, Karnataka – the budget. (See more in or Budget Special category states and islands 200 MW, and Rajasthan – 750 MW). Analysis on pg 52) will receive a subsidy of 70 per cent

20 J SOLAR TODAY January-March 2017 www.SolarToday.co.in

Th ere are 809 MW of solar projects installed under the Telangana TELANGANA state policy and 2,000 MW under construction. Th e Th ere are 340 MW of solar projects installed under state has signed PPAs for 530 MW in ’s state policy and 292 MW under construction. March 2015, through reverse bidding. Madhya Pradesh Power Management Company (MPPMCL) Of this 528 MW has been announced fi nancial bids for 300 MW in July 2015. PPAs have commissioned. Th e Southern Power MADHYA PRADESH been signed for 312 MW of which a 20 MW project was Distribution Company of Telangana commissioned and 292 MW is expected to be commissioned by (TSSPDCL) invited 2,000 MW solar early 2017. Th e state released the Madhya Pradesh Renewable Energy Policy 2016 with bids on ‘Build Own Operate’ basis in focus on solar PV systems. RE systems installed under this policy will not be treated as April 2015. PPAs have been signed for ‘construction’ and therefore, will not attract additional liabilities associated with 1,998 MW in February and March property taxes when systems are installed on rooft ops or premises. Th e equipment/ 2016. Th ese projects are expected to parts purchased for installation/repairs/maintenance of RE systems under this policy be commissioned in the second half of will be exempt from VAT and entry taxes. Th e state government will provide 30 per 2017. Telangana has submitted cent subsidy to users installing on their own rooft ops or land. Government buildings proposal to the MNRE to replace 1 and government owned lands are expected to fetch developers a subsidy of 45 per cent GW of energy from conventional to 50 per cent. power projects with solar.

Th ere are 1,359 MW of solar projects installed under the South India, CleanMaxx Solar Tamil Nadu state policy and 278 MW under construction. In the posiƟ vely aĸ rms that growth in the state, about 278 MW of projects are pending construction. rooŌ op solar segment will be similar TANGEDCO also issued a request for selection (RFS) to procure to 2016. “I expect 2017 to see a TAMIL NADU 500 MW of solar power from developers in Tamil Nadu through a reverse auction. TANGEDCO has received tepid response to its similar growth rate in commercial and RFS to procure 500 MW of solar through a reverse auction. Bids of only 117 MW have industrial projects, and higher growth come in so far, which is less than 25 percent of the original procurement goal. Th is is in educaƟ onal insƟ tuƟ ons and central not surprising considering Tamil Nadu’s reputation when it comes to curtailment and payment issues. government rooŌ ops,” he suggests. (Turn page 31 to know CleanMaxx Solar’s 2017 plans)

TopdŽƉϮϬ 20 ĞǀĞůŽƉĞƌƐĐĐŽƵŶƚĨŽƌϳϱйŽĨhƚŝůŝƚLJͲ^ĐĂůĞ^ŽůĂƌWƌŽũĞĐƚ Developers Account for 75% of Utility-ScaleWŝƉĞůŝŶĞ Solar Project Pipeline SOLAR PARKS

ϭϬй India is targeƟ ng 100 GW of solar by 2022, with 20 GW allocated to solar

ϴй parks. MNRE is considering increasing the capacity to be developed at solar ϲй parks to 40 GW. Currently, there are 34 solar parks planned across ϰй 21 Indian states, where projects aggregaƟ ng 20 GW will be set up. Ϯй However, project development

Ϭй is being hampered by delays

& relaƟ ng to infrastructure and site ƐƐĞů EdW ĚĂŶŝ njƵƌĞ D ^ƵnjůŽŶ DLJƚƌĂŚ 'ƌĞĞŶŬŽ

^ŬLJWŽǁĞƌ DĂŚŝŶĚƌĂ preparaƟ on issues. dĂƚĂWŽǁĞƌ KW'WŽǁĞƌ ZĂƚƚĂŶ/ŶĚŝĂ ^ŽůĂŝƌĞĚŝƌĞĐƚ ZĞEĞǁWŽǁĞƌ ŶĞƌŐŽŶ^ŽůĞƋ ^'ůĞĂŶƚĞĐŚ All 34 solar parks have received ,ŝŶĚƵƐƚĂŶWŽǁĞƌ

,ĞƌŽ&ƵƚƵƌĞŶĞƌŐŝĞƐ in-principle approvals. Under the

Source:^ŽƵƌĐĞ͗DĞƌĐŽŵĂƉŝƚĂů'ƌŽƵƉ;ĞĐϮϬϭϲͿ Mercom Capital Group (Dec 2016) guidance of the MNRE, in some states, SECI has formed joint ventures with of the quoted project cost or MW of grid-connected rooŌ op solar in state renewable energy agencies to Rs 52.5 (~$0.7881)/W. India for installaƟ on on government construct these solar parks. In AŌ er the iniƟ al tender, an buildings and oĸ ces throughout the Arunachal Pradesh, Assam, Gujarat, amendment to the capaciƟ es country, around 300 MW will be Chhaƫ sgarh, Haryana, Himachal allocated under various categories had developed under the CAPEX Pradesh, Jammu & Kashmir, been made, with the total capacity of (purchase) model and 700 MW under Maharashtra, Meghalaya, Nagaland, 500 MW divided into Part A-200 MW the RESCO (lease) model. (For bidding Odisha, Rajasthan, Telangana, (CAPEy), Part B-200 MW (RESCO) and guidelines refer box Bidder’s Paradise) UƩ arakhand and , state Part C-100 MW (CAPEy). While connecƟ ng the dots, Andrew nodal agencies are the implemenƟ ng Now that SECI has tendered 1,000 Hines, Business Development Head - agencies. NTPC is overseeing the

January-March 2017 SOLAR TODAY J 21 cover story outlook 2017

Th ere are 60 MW of solar projects installed under the Uttarakhand state policy and 151 MW under construction. Uttarakhand Renewable Energy Development Agency (UREDA) signed PPAs to develop 181.4 MW of projects in March 2016. UTTARAKHAND Of this, 30 MW has been commissioned and the rest is expected to Th ere are be commissioned by March 2017. Th ese projects had a strict 492 MW of deadline to be commissioned by October 2016, but due to delays in signing PPAs and solar projects evacuation delays by discoms, the commissioning dates were extended to the fi rst installed quarter of 2017. KARNATAKA under the Karnataka state policy and 1,781 MW under construction. Under Batch IV, KREDL construcƟ on of solar parks in signed PPAs for 500 MW in early BIDDER’S PARADISE! 2015. Around 300 MW of projects Andaman & Nicobar Islands. have been commissioned. Th e The government’s rush to aucƟ on remaining projects are expected to be Developers of CAPEX rooft op projects in these parks ahead of commissioned by early 2017. Under projects can bid for a minimum of compleƟ ng land acquisiƟ on formaliƟ es Batch V, tenders were issued for 1,200 500 kW and a maximum of 50 MW; MW. Under this program, tenders developers of RESCO projects can has led to project developers winning were sought for up to 20 MW on a bid for a minimum of 2 MW and a bids but Į nding that infrastructure is taluk-by-taluk (county) basis in 60 maximum of 100 MW. Developers not ready to start construcƟ on. In taluks in an eff ort to distribute solar can bid for a maximum capacity of some cases, such as the Pavagada, capacity evenly across the state. 100 150 MW under CAPEX and RESCO MW of capacity was reserved for solar together. Successful bidders can also Charanka and Kadapa solar parks, cell and module manufacturers secure loans from the Indian bid-submission deadlines for tenders located in Karnataka. Renewable Energy Development have been repeatedly extended. Agency (IREDA). Winning developers will have to conduct operation and maintenance LOWER BIDS INTEREST RATES of CAPEX projects for fi ve years and The swiŌ decline in module prices Th ere are RESCO projects for 25 years. Under over the last three to four months is about 590 MW the CAPEX model, developers are the single most important posiƟ ve expected to enter into an agreement of solar projects event for the Indian solar sector. in operation with the rooft op owner at a ceiling project cost of Rs 75,000 (~$1,111)/ Crystalline silicon module prices have ANDHRA PRADESH under the Andhra Pradesh kW. For RESCO projects, developers declined by approximately 10 per cent state policy and about 93 MW of will have to sign PPAs for 25 years at over last three months and by about a tariff of Rs 7 (~$0.10)/kWh for projects are under construction. 30 per cent over the last 12 months. Th ere are 140 MW of projects being general category states and Rs 5.37 developed at a fi xed tariff of Rs 6.49 (~$0.08)/kWh for special category The lowest price quoted was (~$0.0954) per kWh. Of this, about states. Jammu & Kashmir, $0.31 (~Rs 21)/W, an inconceivable 124 MW have been commissioned Uttarakhand, Himachal Pradesh, price point a few quarters ago. North-Eastern states, Lakshadweep, to date. A 2 MW project is likely Projects that have bid around to be cancelled. Th e status of the Andaman & Nicobar Islands, remaining 11 MW projects is yet Daman & Diu, Puducherry, Dadra Rs 4.5 (~$0.066)/kWh are in a to be determined. Th e renewable & Nagar Haveli, and Chandigarh fall comfortable posiƟ on, as a result of the energy agency of Andhra Pradesh, under the special category states. signiĮ cant decline in module and For projects under the RESCO NREDCAP, has received expressions inverter costs, according to many of interest (EoI) for a 500 MW wind model, bidding will be based on a and solar hybrid park development in levelised tariff . Winning bidders in developers. However, low component Ananthapuram district, which can be general category states and UTs prices will be factored in future expanded to 1 GW over three to will be provided an incentive of aucƟ ons pushing bids even lower. It is Rs 18,750 (~$278)/kW, and winning fi ve years. Since there were issues expected that the Central Electricity pertaining to eligibility criteria, bidders in special category states this EoI has been withdrawn and is and islands will be provided an Regulatory Commission (CERC) currently being amended. Th e state incentive of Rs 45,000 (~$667)/kW. benchmark tariī and module price has also submitted a proposal to Th e rooft op solar sector recently consideraƟ on to be extremely received approval from the World MNRE to replace 2 MW of energy aggressive based on recent trends. from conventional power projects Bank for a global environment with solar. Th e state has committed facility (GEF) grant of $22.93 The average interest rates for solar to 10 GW of solar by 2022. Of million (~Rs 1.55 billion) to enhance projects have come down slightly this, there are plans for 3 GW of installed capacity of grid-connected compared to the previous quarter. rooft op solar PV (GRPV) and to hybrid wind and solar projects. Projects with tariī s below Rs 5 (~$0.073)/ It is also looking at incorporating strengthen the capacity of relevant energy storage. institutions for widespread kWh are suddenly becoming viable installation of GRPV in India. due to the decline in module prices, and banks are now Į nding it comfortable

22 J SOLAR TODAY January-March 2017 www.SolarToday.co.in

Source: Mercom Capital Group

to lend to the solar sector at lower interest rates. Large corporaƟ ons with Year 2017 will be one of expansion big balance sheets conƟ nue to enjoy the privileges of lower lending rates. and consolidating our leadership That said, Nandkumar Pai - Vice position in the solar power sector. WƌĞƐŝĚĞŶƚ;^ĂůĞΘDĂƌŬĞƟŶŐͿ͕ - Manoj Kumar Upadhyay, Founder & Chairman, RenewSys is of the opinion that for ACME GROUP the year 2017 to be beƩ er than 2016, with the installed solar power base increasing by 8-9 GW, will be driven (Turn page 28 to know Vikram Solar’s of capacity next Į scal. Considering mainly by a healthy project 2017 plans) ‘WaƩ a Year’ it could be for India’s development pipeline of 25 GW and However, DĂŶŽũ<ƵŵĂƌhƉĂĚŚLJĂLJ͕ sunshine sector next Į scal, there are expected fall in interest rates and &ŽƵŶĚĞƌΘŚĂŝƌŵĂŶ͕D'ƌŽƵƉ, certain shortcomings that the lower project costs. (Turn page 32 to has a diī erent view. Although, Upadhyay government needs to work on such as know RenewSys 2017 plans) proclaims that conƟ nuous decline in encouraging domesƟ c manufacturing. Project IRRs are starƟ ng to look capital cost has led to solar tariī Current support from the government good mainly due to the fall in module starƟ ng to compete with the tariī of doesn’t give a long term window for prices, which has signiĮ cantly brought convenƟ onal power sources. But in players, thus making it diĸ cult to down the cost of projects. Project absence of the noƟ Į ed guidelines commit capital investments. Support developers are expecƟ ng project IRRs from MNRE for solar sector and with from government in the form of in the range of 13-20 per cent. Even rising aspiraƟ on of investors and direct subsidies, lower and beƩ er banks, which tend to be conservaƟ ve government to meet those ambiƟ ous streamlined taxes, higher status to the in their esƟ mates, are Į nding project targets lies a biƩ er truth of delays and sector for geƫ ng capex access will IRRs in the range of 11-19 per cent. uncertainty surrounding the sector help. This will also provide a more In this connecƟ on, :ŽLJ^ĂdžĞŶĂ͕ due to some inhabited problems. level playing Į eld for domesƟ c players džĞĐƵƟǀĞŝƌĞĐƚŽƌ;&ŝŶĂŶĐĞͿŽĨ At the macro level, the sector looks against subsidised imported panels Vikram Solar advocates lower cost of good. The government is aggressive from depreciated plants with much interest from the current 11 per cent, and it can be evident from the recent higher economies of scale. considering banks are not favourable budget where the government has in funding low tariī based projects. proposed to take up addiƟ onal 20 GW - Z,h><Dd

January-March 2017 SOLAR TODAY J 23