India to Float Tenders for Solar and Wind Power

Raj Kumar Singh, India’s minister for power and new and renewable energy said that 20 gigawatts each of wind and solar power contracts will be auctioned to boost India’s capacity to manufacture equipment, such as solar modules, or panels, which account for nearly 60% of a solar power project’s cost. Most solar power developers in India source solar modules and equipment from countries such as China, where prices are lower. But due to this, Indian manufacturers account for only about 10% of the market despite India having an ambitious 175 GW clean energy target by 2022, of which 100 GW is projected from solar projects.

The Government of India plans to award contracts to developers who quote the lowest price at which they will sell electricity in the auction process for the grid-linked capacity. The projects are expected to be commissioned in phases, reports Live Mint.

Solar Panels

Solar Panels

“It is a great move. Bidding pipeline has gone dry for quite some time and this is very much welcome. This reinforces the government’s commitment to solar… I would also hope that issues related to land acquisition, electricity evacuation and power purchase agreements are simultaneously addressed,” said Sanjay Aggarwal, managing director at Fortum India Pvt. Ltd.

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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