Four-S Monthly Cleantech Track March 2012
India’s largest solar program cuts power rates by up to 33%
India’s largest solar program, of the State of Gujarat, has cut the preferential rate it pays to utilities for sun power by as much as 33% as global prices of panels declined by more than half.
Photovoltaic plants commissioned after the Jan. 28 deadline will be paid a rate of Rs 9.98 (20 cents) per kilowatt-hour for the first 12 years, compared with Rs 15 for those finished on time, the Gujarat Electricity Regulatory Commission said in a tariff order. The rate will be reduced to Rs 7 per kilowatt-hour for the next 13 years.
India joins governments in Europe that are cutting clean energy subsidies as equipment costs plunge. Panel prices fell 51% last year after the 10 largest manufacturers doubled production capacity, according to data compiled by Bloomberg.
The companies that finished their projects by Jan. 28 include Lanco Infratech, Tata Power, GMR Infrastructure, Azure Power India and Green Infra.
Of the 958MW of capacity, Gujarat issued contracts for 25MW of projects using solar-thermal technology where steam is produced from sunlight for conventional turbines. Rests were for PV projects - PV technology uses panels that convert sunlight directly into electricity.
The regulator raised the rate for solar-thermal projects and fixed it for 25 years to give them more certainty after one developer was unable to raise bank loans after 11 months, according to the tariff order. These projects will now be paid Rs 11.55 per kilowatt-hour that won’t be reduced from Rs 11 to Rs 4 per kilowatt-hour after 12 years as planned earlier, it said.
The rate paid to photovoltaic plants will be lowered 7% annually from the Rs 9.28 rupees for each year that their completion is delayed after March 31, 2013.
India’s largest solar program, of the State of Gujarat, has cut the preferential rate it pays to utilities for sun power by as much as 33% as global prices of panels declined by more than half.
Photovoltaic plants commissioned after the Jan. 28 deadline will be paid a rate of Rs 9.98 (20 cents) per kilowatt-hour for the first 12 years, compared with Rs 15 for those finished on time, the Gujarat Electricity Regulatory Commission said in a tariff order. The rate will be reduced to Rs 7 per kilowatt-hour for the next 13 years.
India joins governments in Europe that are cutting clean energy subsidies as equipment costs plunge. Panel prices fell 51% last year after the 10 largest manufacturers doubled production capacity, according to data compiled by Bloomberg.
The companies that finished their projects by Jan. 28 include Lanco Infratech, Tata Power, GMR Infrastructure, Azure Power India and Green Infra.
Of the 958MW of capacity, Gujarat issued contracts for 25MW of projects using solar-thermal technology where steam is produced from sunlight for conventional turbines. Rests were for PV projects - PV technology uses panels that convert sunlight directly into electricity.
The regulator raised the rate for solar-thermal projects and fixed it for 25 years to give them more certainty after one developer was unable to raise bank loans after 11 months, according to the tariff order. These projects will now be paid Rs 11.55 per kilowatt-hour that won’t be reduced from Rs 11 to Rs 4 per kilowatt-hour after 12 years as planned earlier, it said.
The rate paid to photovoltaic plants will be lowered 7% annually from the Rs 9.28 rupees for each year that their completion is delayed after March 31, 2013.
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