Page 7 - AsiaElec Week 06 2022

AsiaElec RENEWABLES AsiaElec

900-MW Norwegian solar project

in India postponed

INDIA CITING a “40% import duty” in addition to a domestic production of solar panels and asso-
shortage of locally produced solar panels to ini- ciated materials.
tiate the project, a $400mn solar development India remains the world’s third ranked green-
project taken on by Norwegian renewable power house gas (GHG) producer but is seeking to
producer Scatec in the Indian state of Rajasthan reduce emissions to zero by 2070.
has temporarily, at least, been suspended. Solar power capacity has increased 11-fold in
The decision to shelve the project was made India over the past five years, according to Neel-
prior to ground having actually been broken at ima Jain, the current deputy director and senior
the site, even though the finished plant had been fellow, Whadhwani Chair in US-India Policy
scheduled to come online some time later this Studies at the Center for Strategic and Interna-
year. tional Studies.
A Scatec earnings report published last week According to Jain, “India has been punching
had said “Scatec and ACME have decided to put above its weight as part of the additional renew-
the 900-MW project in India on hold due to lack able energy capacity system, despite continuing
of supply of domestic solar panels and a 40% to balance the development and social needs of a
import duty on solar panels to be imposed from large and complex developing nation.”
April 1 (2022).” Jain added that “the installed capacity of
Oslo-based Scatec first showed interest in (India’s) renewable energy overall has increased
Indian solar projects last year when it partnered to about 220% in the last four years”, while “solar
with local firm ACME Solar to meet a 25-year power capacity alone has increased more than
power purchase agreement (PPA) with Solar 11-fold in the last five years.”
Energy Corporation of India (SECI). As a result, and in spite of overseas investors
The reference to a “lack of supply of domes- such as Scatec being forced to delay or even can-
tic solar panels” and import duty, however, cel projects on the back of limited material sup-
is being seen by some in India as indicative of ply at present, some are seeing the government’s
the true state of play of New Delhi’s wider solar investment and import duty ruling as an oppor-
ambitions. tunity gained rather than lost.
80% of all solar materials used across India Both Adani Group and Reliance Industries,
are currently imported from neighbouring two of India’s most prominent multinationals,
China. are said to have already put together plans to
Publicly at least, India is aiming for 280 GW produce solar panels and associated equipment
of grid-linked solar capacity by the end of the required to boost domestic infrastructure.
decade, in the process making up the majority of And Rupesh Sankhe, vice-president of Elara
the national target of 450 GW of power obtained Capital, one of India’s leading investment banks
from renewable energy sources. in Mumbai, recently backed the government
As a result, in its bid to limit the current proposals, saying: “(W)ith such ambitious tar-
dependence on Chinese produced solar imports gets in mind, one can’t continue to depend on
at a time the two nations are facing off over terri- imports and remain exposed to supply chain
torial issues in the Himalayan border region, the risks,” continuing: “building out a local supply
government of Prime Minister Narendra Modi chain will limit risks tied to border skirmishes
last week announced a INR195bn ($2.62bn) and other disputes with China, and also help
investment programme aimed at expanding deliver local jobs.”™

Week 06 09•February•2022 www. NEWSBASE .com P7