The imported photovoltaic (PV) module price has been rising over the last 3-4 months, up by about 15 per cent, to 35-37 cents per watt in August, from about 30-32 cents in May
The upward trend in imported photovoltaic module prices is likely to affect viability of recently awarded solar projects, rating agency ICRA said in its report.
The imported photovoltaic (PV) module price has been rising over the last 3-4 months, up by about 15 per cent, to 35-37 cents per watt in August, from about 30-32 cents in May, an ICRA statement said.
“In ICRA’s view, this rise is due to factors such as advancement of module sourcing from China by companies in the US in anticipation of imposition of anti-dumping duty… and extension of feed-in tariff regime for solar power projects in China till September 2017, thereby increasing demand,” said Sabyasachi Majumdar, Senior Vice-President and Group Head, ICRA Ratings, in the statement.
“Such pricing pressure, if sustained over the next 3-6 months, will adversely impact the viability of recently bid solar power projects, where bid tariff is below Rs 3.5 per unit,” Majumdar added.
ICRA also flagged risk of delays along with cost overruns due to disruption in delivery schedule and dishonouring of price terms agreed earlier by Chinese (original equipment manufacturers) OEMs to Indian independent power producers (IPPs).
According to ICRA estimates, a 6 cent per watt jump in PV module price will result in an increase of about 11 per cent in capital cost and decline in project internal rate of return (IRR).
With PTI Inputs