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As per the recently released report “India Solar Compass” by BRIDGE TO INDIA, India added 2,105 MW solar power capacity while the total installed capacity stood at 44,241 MW in Q2 2021. Utility solar installations increased by more than 33% in QOQ in Q1 2021.
The report further explained that short term market outlook is murky because of the delays and increased in cost of projects due to COVID-19 lockdowns.
Tender issuance in Q2 was down 25% QOQ. 17 utility scale project tenders aggregating 8,062 MW and six rooftop tenders aggregating 94 MW were issued in the quarter. There were only three project development auctions totalling 625 MW with tariffs ranging between INR 2.51 to 2.68/ kWh.
The quarter had two major policy announcements of Basic Customs Duty and PLI Scheme for domestic module manufacturer.
As per the report module and equipment prices were relatively stable in comparison to previous quarter. Many module suppliers are believed to be renegotiating module prices and/ or delaying shipments because of supply chain constraints.
There are 21,696 MW of auctioned projects yet to be tied-up. The quarter saw ISTS waiver extension by two years to 2025. The waiver now also applies to GTAM, pumped hydro and battery storage projects.