Solar power in India crossed 7.5 GW mark in May 2016. India’s solar projects have crossed 22 GW with 13 GW under construction and 9 GW in the request for proposal process.
However, while the government has shown a strong commitment to renewable power, including solar, it only represented 2.5% of net installed power generation capacity in India, up from 1.4 % a year ago.
Low bidding levels have also been a major concern. This comes at a time when the Indian banking sector has been grappling with its own challenges, making borrowing much more difficult for developers.
“Solar power is market-driven. The DISCOMs and banks will play a major role in its success in India. Developers are suffering from significant debts. The challenge here is to get connected to the grid. If DISCOMs don’t buy power, it’ll be a problem”, Shailendra Roy, Director & Sr. Executive Vice President (Power, Heavy Engg. & Defence) at L&T India said on the sidelines of the launch of EnergyInfraPost.com.
As things stand now, of the approx $8 billion collected under the Clean Environment Cess till now, only $3 billion is expected to be transferred to the National Clean Energy Fund (NCEF). The Ministry of New and Renewable Energy (MNRE) is likely to be allocated only 23% of the total amount collected so far under the Clean Environment Cess.