GOVT TO INVITE BIDS FOR 20GW SOLAR POWER CAPACITY
NEW DELHI: India plans to invite bids for setting up 20 gigawatts (GW) of solar power capacity— the world’s largest tender at one go—in an attempt to spur domestic manufacturing of solar power equipment. The effort will help further lower solar power tariffs and provide a boost to the government’s Make in India plans.
Most solar power developers in India have been sourcing solar modules and equipment from countries such as China, where they are cheaper. This has resulted in domestic manufacturers accounting for only around 10% of the market despite India having an ambitious 175GW clean energy target by 2022, of which 100GW is to come from solar projects.
“We are planning to introduce the idea of mega bids to boost solar equipment manufacturing in India. This may also result in a substantial reduction in tariffs,” a senior government official said on condition of anonymity.
According to the contours of the tender being worked out, the ministry of new and renewable energy (MNRE) plans to award these contracts to developers who will quote the lowest price at which they will sell electricity in the auction process for the gridlinked capacity.
The projects are expected to be commissioned in phases.
Solar modules, or panels, account for 60% of a solar power project’s cost. For China’s solar panel manufacturers, with a capacity estimated to be 70GW per year, the major markets are the US, India and China itself.
Solar tariffs fell to a record low of ₹2.44 per kilowatt hour (kwh) in May, and firmed up to ₹2.65 per kwh in an auction by the Gujarat government in September. These tariff levels are lower than the average rate of power generated by coal-fuelled projects of NTPC.
Queries emailed to an MNRE spokesperson remained unanswered. MUMBAI: Global demand for gold slipped 9% to 915 tonnes during the third quarter of 2017 compared to the same period last year, an eight-year low, said a World Gold Council report. It has dipped 12% so far in 2017. The gold demand trends report said that the fall was due to weak demand in the jewellery sector and significantly lower inflows into exchange-traded funds.
“A weak quarter in India was the main reason for year-on-year decline in global demand. The new goods and service tax regime deterred consumers, as did new anti-money laundering regulations governing jewellery retail transactions,” said the report released on Thursday.
Demand for gold in India for the three months ending September was at 145.9 tonnes, down 24% from 192.8 tonnes a year ago.
After three consecutive quarters of growth, demand for gold jewellery fell by 25% year-onyear to 114.9 tonnes in the third quarter of 2017. It said that recovery in Indian jewellery demand in the first half of 2017 was derailed in July-september due to implementation of GST in July, followed by a further blow when the government brought the gems and jewellery industry under the umbrella of the Prevention of Money Laundering Act (PMLA) in late August.
Demand, therefore, remained under pressure, particularly in rural India. However, consumer sentiment improved after PMLA was lifted from gems and jewellery sector in early October ahead of Diwali, but festive demand did not pick up due to GST constraints.
Somasundaram PR, MD, India, World Gold Council said, “Headwinds for demand continue though, following various measures since early 2016 to boost transparency, and therefore we expect full year demand in 2017 to be well below five-year average, our estimate being between 650 to 750 tonnes.”
Meanwhile, investment demand for gold was down 28% year-on-year at 241.2 tonnes as ETF inflows slowed sharply from the 2016 levels. “During the Q1 to Q3 period, inflows of 179.7 tonnes were one-quarter of the record inflows seen in the first nine months of 2016. ETF investors lacked a clear catalyst in Q3 as the gold market was pulled in different directions, culminating in modest global inflows for the quarter,” WGC said.