Delays in the commissioning of solar photovoltaic projects and States missing their renewable portfolio obligations — a certain portion of green component in their energy mix — are the main reasons for the country’s installed solar capacity in 2012 being 110 MW lower than projected.
According to Mercom Capital Group llc, a clean energy communications and consulting firm, India installed solar capacity of 980 MW in 2012 against the forecast for 1,090 MW.
Raj Prabhu, CEO and co-founder, Mercom Capital, said there were delays in commissioning 144.5 MW of photovoltaic projects in Gujarat and most States missed their renewable portfolio obligation goals with enforcement almost non-existent.
Cumulative installations in India stand at over 1.2 GW. In addition, 340 MW of photovoltaic projects are due to be connected to the grid this month under the Jawaharlal Nehru National Solar Mission (JNNSM) Phase I, Batch-II.
“We are forecasting India to install another 1.3 to 1.4 GW in 2013,” he said.
Anti-dumping: The Indian solar programme appeared to have gained some momentum until it initiated an anti-dumping investigation against China, Malaysia, Taiwan, and the US relating to the import of solar cells, a Mercom report on the Indian Solar Market says.
The investigation was initated following a complaint filed by Indian manufacturers on the alleged dumping of solar modules by these countries.
“For a solar market still in its infancy, starting a trade war could become a costly distraction when the focus should be to encourage new technologies, competition and free markets,” said Prabhu.
The US has said it has requested the World Trade Organisation (WTO) to hold consultations with the Indian Government on domestic content requirements in India’s solar programme. The US says India’s solar programme appears to discriminate against US solar equipment manufacturers by requiring developers to use Indian-manufactured solar cells and modules by offering subsidies to developers who rely on domestic equipment instead of imports.
The trade dispute will add to uncertainties in the Indian market, where financing is already a challenge, and would make investors even more skittish, Prabhu added.