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CEA Working On Optimized Power System Cost For 2030

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The Central Electricity Authority (CEA) has undertaken a study to ascertain the cheapest power mix in 2030, its Chairman Pankaj Batra said.

“We are working on what should be the ‘Ideal System Cost’ in 2030 and a report is expected in a month’s time,” Batra told .

The report will try to find out the cheapest power mix with grid stability in 2030, and would give a direction to the power sector developers, he said.

The outcome of the study will also act as components to the regulators in determining power tariffs.

According to estimates by the Ministry of Power, the share of renewable energy in India’s electricity mix is set to increase to around 55 per cent by 2030.

At present, renewables account for nearly 20 per cent of the total installed capacity.

India has committed to produce about 40 per cent of its installed electricity capacity from non-fossil fuel sources by 2030. It has also set a target of adding 175 GW of renewable energy capacity by 2022.

Meanwhile, the CEA is also closely working with stakeholders in building a cost-effective power evacuation infrastructure in Leh and Ladakh region of Jammu and Kashmir.

“The region holds potential for 35,000 MW of solar power. We need to build a cost-effective evacuation transmission network before the solar projects are awarded there,” Batra said.

It can be executed by a combination of underground cables and towers installed by airlifting, he said.

The Jammu and Kashmir government has already signed an MoU with the Centre for development of two mega solar parks with a total capacity of 7,500 MW in the Ladakh region.

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No Change In Solar Safeguard Duty Until Next Hearing In Odisha High Court

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The government will consider changes to the safeguard duty imposed on solar cells imported from China and Malaysia only after the next hearing in the Odisha High Court that had stayed the levy, three people with the knowledge of the matter told BloombergQuint.

The government will submit its notification to the court along with the reasons cited by the Directorate General of Trade Remedies to increase the safeguard duty in its report, said the first of the three officials. It will then decide whether to roll it back or not, the official said.

As of today, the notification to hike the duty stays, the second official quoted earlier said.

On a petition filed by Acme Solar Holdings, the Odisha High Court ordered on July 23 that the central government should not issue any notification to impose the duty. The Department of Revenue, however, imposed the safeguard duty on July 30.

The government didn’t receive a copy of the judgment, and it was also not available on the court’s website when the gazette notification was issued, the officials quoted earlier said.

The court will now hear the matter on Aug. 20, according to its order—BloombergQuint has obtained a copy of it.

Emailed queries to the Ministry of Finance remained unanswered.

India imposed the safeguard duty for two years effective July 30 after Indian Solar Manufacturers’ Association filed an application late last year, saying the domestic industry sustained heavy losses due to a surge in solar cell imports. A July 26 parliamentary panel report also said the dumping of Chinese solar panels resulted in loss of nearly two lakh jobs as about half of India’s domestic industry capacity remained idle.

A levy of 25 percent has been imposed for imports in the first year starting July 30, and 20 percent and 15 percent for the two subsequent six-month periods, respectively. But confusion persists over the notification’s status due to the court order.

Forum Shopping?

The Madras High Court had dismissed a similar petition in April that challenged the Directorate General of Safeguards’ recommendation of 70 percent safeguard duty on import of solar panels and modules. The petitioner, Shapoorji Pallonji Infrastructure Ltd., claimed that had not been given enough time to respond during the investigation.

Solar developers are moving different courts to seek a judgment in their favour, the official said.

Acme had earlier moved Delhi High Court challenging a 70 percent safeguard duty proposed by Directorate General of Safeguards on solar equipment. The court disposed of the petition as the government counsel informed the court that DG Safeguards recommendations were not binding. The petitioners were told by the judges that they could move a fresh petition if the government takes such a step, according to the court’s order.

However, after the duty was hiked, the petitioner moved the Odisha, and not Delhi High Court, said the first official.

Questioning the use of term “forum shopping”, Shashi Shekhar, vice-chairman of Acme Solar Holdings, said it’s unfair to impose safeguard duty without any notice.

Acme Solar Holdings, which participated in the Indian solar auctions in 2018, and won bids to implement capacity of 1,325 megawatts. Shekhar said the duty will result in tariffs rising by nearly Rs 3 from the current Rs 2.44 per unit.

Solar capacity addition may not exceed 30,000 MW, he said, adding: “Utilities won’t buy such expensive power unless they’re incentivised.”

Shekhar said solar developers have urged the government to provide interest subvention, or grant, of 2 percent to domestic solar cells manufacturers. “The government can reserve projects in which solar cells made by domestic companies can be used for rural electrification.”

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SEZ Solar Units Hit By Blind Spot in Safeguard Duty

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NEW DELHI: Lack of clarity on whether the 25% safeguard duty (SGD) on imported cells and modules will apply to solar manufacturing plants in special economic zones (SEZs), which account for 70% of domestic capacity, have got major domestic players worried over the future of their investments in such units.

The finance ministry last month notified 25% SGD on imported solar cells and modules to check dumping by Chinese-owned companies in the mainland and Malaysia. This was done on the recommendations of Directorate General of Trade Remedies. The notification did not clarify whether the duty will apply to items supplied to the local market, called ‘domestic tariff area’ in industry parlance. Since SEZ units use imported components for solar manufacturing, the companies say the ambiguity in the notification could hit their investments and cause loss of jobs.

The Adani group, Vikram Solar, Web sol Energy and Renews are among the major investors who have set up solar manufacturing facilities in SEZs. The manufacturers have now knocked on the finance ministry’s doors to clarify that SGD will apply only on the value of imported cells used by SEZ units to manufacture modules that are then supplied to DTA. They have also requested the ministry to clarify that the SGD will not apply to solar modules manufactured and supplied to DTA by using imported wafers or other raw material that are not within the scope of DGTR’s anti-dumping probe.

The National Solar Mission envisages 100 giga watt GW of solar power generation capacity by 2022 and a total domestic manufacturing capacity of 4-5 giga watt (GW) by 2020. India has commissioned close to 15,000 MW of solar power capacity and 5,000 MW more is at various stages of execution. But industry data pegs the current manufacturing capacity at 3,164 mega watt (MW) for solar cells and 8,398 MW for solar modules.

This has led to a skewed market and opened the gates for dumping. There are a handful of manufacturers, while solar power project developers have mushroomed, leaving the field wide open for Chinese manufacturers, who have failed to set up plants in India.

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India Imposes 25% Safeguard Duty on Solar Imports

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The Indian government has imposed a safeguard duty of 25% on solar imports from China and Malaysia for two years. The Ministry of Finance (Department of Revenue) levied the duty based on the final recommendations proposed by the Directorate General of Trade Remedies (DGTR). While most industry players are dismayed, believing project costs could “immediately” go up by 15%, others are more optimistic.

In its report, the DGTR concluded that increased imports of solar PV cells in India have caused “serious injury” and “threaten to cause serious injury” to domestic producers. The safeguard duty of 25% on PV modules and cells will now come into force from July 30, 2018.

The notification was issued by the Ministry, despite Orissa High Court’s stay order on the safeguard duty proceedings until August 20, 2018.

According to the notification, a 25% safeguard duty has been imposed between July 30 2018 and July 29, 2019. It will gradually come down to 20% between July 30, 2019 and January 29, 2020, and 15% from January 30, 2020, to July 29, 2020.

India’s import of cells has jumped from 1,275 MW in 2014-15, to 9,790 MW in 2017-18. Imports from China and Malaysia account for nearly 90% of this total. India, meanwhile, produced just 842 MW solar cells in 2017-18.

Industry reaction

Gaurav Mathur, Director, Trina Solar India, calls the imposition of duties “highly detrimental” to the country’s ambitious solar plans. “Instead of imposing duties, the government should provide incentives to domestic and foreign companies to manufacture in India,” Mathur told pv magazine. With more than 1 GW in total shipments, the Chinese firm was the largest solar PV module supplier to India in 2017.

“It is a very regressive step. Currently, India does not have enough manufacturing capability and 25% duty will certainly lead to hike in price of solar panels and consequently, solar tariff. It will, however, lead to short-term gain for India’s top domestic manufacturers,” said Adarsh Das, Co-founder & CEO, SunSource Energy.

“A two-year horizon is too narrow a window for any company to step in and begin manufacturing locally,” he added.

“In one stroke, the Indian solar industry has been pushed back by a couple of years. The cost of solar projects will straightaway go up by 14-15%, which would not only derail the ongoing projects but will also dampen the new pipeline,” Gagan Vermani, Founder & CEO, Mysun, told pv magazine.

“We can expect an almost immediate slowdown in the solar industry and that would also have a huge impact on the large number of solar jobs in the downstream business,” added Vermani.

Vikram Solar was also critical of the move. Gyanesh Chaudhary, MD & CEO commented, “The Safeguard Duty Notification issued by The Ministry of Finance does not provide exemption to the projects which have already been auctioned out (approximately 20-25 GW ). This will completely derail the solar industry. To add on to that, the notification does not provide any relief to Solar cells and modules manufactured in SEZ and cleared to DTA. Currently, 40% of Solar Module Manufacturing Units and 60% of Solar Cells Manufacturing Units are located in SEZs.”

He continued, “In light of the SEZ issue, the notification defeats the very purpose of Safeguard Duty, which is to protect and promote domestic industry. While it may seem logical that SEZs should be exempted, considering that the whole purpose of applying Safeguard duty is to protect domestic industry against imports so why should they pay these duties, unfortunately the policy makers seem to be in dilemma.”

Waaree Energies, which has 1.5 GW of solar PV module manufacturing capacity in India, however, calls the decision “a welcome respite. “The recent developments kept the manufacturing players on the fence, but we are glad to receive the much-awaited clarity. The move will pave the way for Indian manufacturers to showcase their capabilities,” said Sunil Rathi, Director, Waaree Energies.

Global repercussions

In her latest column, solar analyst, Corinne Lin stated, “After the recommended 25% duty, China’s module costs will still be lower than India’s. As a result, whether the safeguard duty can protect Indian manufacturers or not, is not clear. However, it will negatively impact India‘s PV project develoment, such as raising the construction costs of PV power plants, or reducing the efficency of modules.”

She continued, “For 2019, China’s demand is likely to stay as low as this year, and it will have difficulties bouncing back. Therefore, the global market demand will need India’s growth, in order to once again exceed 100 GW.

“Should the safeguard recommendation become a reality, manufacturers planning to establish production lines in India will speed up their progress; also, the higher costs of PV projects will affect the Indian government’s planned installation volume.”

Read this : http://ibsolar.co.in/news_ib.pdf

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Indian Railways takes big step towards Clean Energy! Solar Panels to be fitted on Passenger Trains; here’s why

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For the first time, coaches on the Indian Railways would be powered by solar energy.

For the first time, coaches on the Indian Railways would be powered by solar energy, with the national transporter retrofitting its passenger trains with flexible solar panels.

This will operate fans, light and mobile charging slots on the coaches, a railway official said.

Developed by the Indian Railway Organization for Alternate Fuels (IROAF), such solar panels were earlier fitted in DEMU trains last year.

After the success on these coaches, it was felt that solar energy can also be harnessed in railway’s main line coaches for the comforts of common man, the official said.

“With this target in mind, Member Rolling Stock (MRS)/ Railway board has directed IROAF to fit Solar PV Panels on rooftop of four passenger trains which face the problem of run down of batteries due to slow running of trains,” he said.

Such fitment of solar panels has started to operate in Sitapur-Delhi Riwari Passenger train.

These panels are light weight and easy to fit and most of these panels have been manufactured in India by CEL Ltd.

It is expected that each such coach will generate between 15 to 20 units (KWH) of electricity per day. The total weight of solar panel on these coaches is approximately 120 kg.

Along with generation of electricity, these coaches are also fitted with sensors which will monitor parameters of the solar energy being generated.

IROAF plans to fit solar panels on 250 coaches on DEMU and passenger trains, the official said.

Out of this, IROAF will undertake the fitment of flexible solar panels in three more passenger trains which face the problem of poor battery charging due to slow running.

These trains are 54255/56, Varanasi – Lucknow via Pratapgarh, 54334/33 Lucknow – Varanasi via Faizabad, and 14203/04 Varanasi – Lucknow Intercity, the official said.

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