The Indian government’s aim to promote domestic manufacturing and use of solar photovoltaic modules may finally start to take shape.
One of India’s leading solar PV modules manufacturers, Tata Power Solar, has announced that it has received one of the largest supply orders for a project in India. The company will supply 100,000 solar PV modules to a 20 MW solar PV project being developed by ACME Solar.
ACME Solar, joint venture between ACME, EDF Energies Nouvelles (EDF EN) and Luxembourg-based natural resources saving group EREN, had secured bids to establish 100 MW of solar PV projects under last year’s auction part of the National Solar Mission.
A total capacity of 750 MW was offered under two tranches of 375 MW each. Projects offered under one of the tranche are required to be set up using modules and cells manufactured only in India, while the projects under the other tranche have the option to import modules as well.
The government had thought that through the National Solar Mission, domestic solar cells and modules manufacturers would be benefited. However, a large number of project developers choose to use imported solar modules, which came as somewhat a mandatory add-on to the low-cost loans provided by development banks in countries like Japan, Germany and the US.
With a separate domestic content usage obligation the Indian manufacturers are now looking to cash in on the altered dynamics. Tata Power Solar earlier announced that it would increase its production capacity by 60%. It currently has a capacity to produce 200 MW of solar PV modules and 180 MW of solar cells.
Indian solar PV module manufacturers have raised the issue of imported modules being used by several project developers. The Indian government is currently contemplating anti-dumping duties on imported modules as it also prepares to auction 1,500 MW of solar PV projects over the next one year.
Image credit: Tata Power Solar