'Solar sector likely to add another giga watt this year'

While the country’s solar sector growth has immense potential, the installations during 2014 are likely to top one giga watt (1,000 MW), just about the same number registered during 2013, according to a consultancy firm.

The firm’s survey of the market revealed that growth in installations might be elusive again in 2014 with numbers forecast to be similar to 2012 and 2013.

In a statement Mercom Capital Group, llc, a global clean energy communications and consulting firm, said solar installations in India totalled 1,004 MW in 2013 compared to 986 MW in 2012. There was very little growth in installations year-over-year.

This slow growth during 2014 was likely due to several factors. There is no likelihood of the Jawaharlal Nehru National Solar Mission (JNNSM) PV projects coming up until mid-2015. Most projects have stalled and State policies are all over the map. India is now in a trade dispute with the US in the World Trade Organisation (WTO).

“It is time for developers to go directly to consumers, there is a large power-starved market waiting to be served that looks better as diesel prices keep climbing,” Raj Prabhu, CEO and Co-Founder of Mercom Capital Group, said.

The US recently announced its request for WTO dispute settlement consultations with India regarding the Domestic Content Requirement (DCR) in JNNSM Phase II projects. The US claims that domestic content rules discriminate against US-manufactured solar cells and modules.

In addition to difficulties with project economic viability stemming from reverse auctions that have pushed down project margins, State policies have been delayed frequently. There is no real Renewable Purchase Obligation (RPO) enforcement in place and national elections are fast approaching, adding more uncertainty to India’s solar market, which could result in a slowdown in large-scale solar project installations.

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