The total installed capacity of solar power has touched 41,689 MW in Q4 2020, as per consultation firm Bridge to India. Consecutively India has heavily filled 46,175 MW of solar projects in the pipeline. The growth trend has pulled down in 2020 due to the corona crisis.
With the impact of increased module prices & financial challenges faced by the developers heavy load of stalling projects reflected. In 2021 a fast pace is expected with the addition of around 16,000 MW.
The reluctance of DISCOMs to sign PPAs is a concern with as much as 19,000 MW of auctioned projects yet to be tied-up. However, tender issuance and project auctions in Q4 were relatively robust at 32,014 MW and 28,050 MW, respectively. The quarter was notable for record low tariffs of INR 1.99-2.01/ kWh in the GUVNL 500 MW and SECI Rajasthan 1,070 MW auctions. Tariffs have dipped by 54% over the last five years and by 18% over the last year. The low tariffs distort future tariff expectations of DISCOMs and raise the risk of project cancellation or contract renegotiations.
Source:- Bridge to India