Solar in India accounted for 5.5 billion units of electricity produced in the country during the second quarter (Apr-Jun) of 2017, an 87 percent increase over the second quarter of 2016, according to data from the Central Electricity Authority (CEA). Solar electricity generation accounted for 1.64 percent of the total power generated in the country for the three-month period (Apr-Jun 2017). Solar’s share of the electricity generated by renewable energy sources has increased to 21.2 percent. In comparison, solar generation registered 4.2 BUs in Q1 2017 (Jan-Mar).
During Q2 2017, 2.5 billion more units of solar were generated compared to Q2 2016. The increase in solar generation can be attributed to higher number of projects commissioning in the quarter.
Solar Power Output in 1H 2017
Solar electricity generation registered 9.7 BUs in 1H 2017 (Jan-Jun 2017), an 86 percent growth compared to 5.2 BUs generation in 1H 2016.
According to Mercom’s India Solar Project Tracker, ~1.9 GW of solar were installed in the three-month period of April to June 2017 (Q2 2017).
According to Mercom’s Q2 2017 India Solar Quarterly Market Update, the Indian solar sector is witnessing strong activity this year, with cumulative installations approaching the 15 GW mark at the end of Q2 2017. Mercom is forecasting 2017 installations to reach approximately 10 GW as India becomes one of the most important solar markets in the world after China and the United States.
However, with the anti-dumping investigation and a slowdown in tender and auctions, market activity has recently slowed down. Uncertainty around GST and state-run distribution companies (DISCOMs) looking at developers to match the lowest possible tariffs are all negatively affecting the immediate growth in the sector.
In August, solar auctions fell precipitously in India. Compared to the robust auction activity in June, solar auctions fell by 95 percent in August with only 76 MW.
Tenders for solar parks has almost come to a halt as the Solar Energy Corporation of India (SECI), National Thermal Power Corporation (NTPC) and the respective state nodal agencies (SNAs) do not want to tender at a time when the market is in a state of flux.
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Wendy is a co-founder of Mercom Capital Group, the parent company of Mercom India. Wendy is a contributing editor at MercomIndia.com and is responsible for content quality across the company and products. She has over 15 years of business and finance experience in the energy and technology markets. In addition to Mercom, Wendy has written for many other clean energy-focused blogs and publications. More articles from Wendy Prabhu.