RENEWABLE ENERGY

Hardening of imported solar PV module price to moderate project returns: Icra

Hardening of imported photovoltaic solar module price will moderate the returns for projects awarded over the last six to nine-month period, rating agency Icra said on Tuesday. The increase in imported photovoltaic (PV) solar module price level by about 15-20 per cent over the last 4-5 months, to around 22-23 cents/watt as of date, is likely to impact the returns of solar power project developers, Icra said in a statement.

This price rise has been mainly driven by a sharp increase in the price of polysilicon, a key input for cell and module manufacturers, it added. Given the import dependency for PV modules for a majority of the solar power installations in India, such hardening in the price of PV modules, if sustained, remains a near-term headwind, the agency noted.

This risk is especially significant for the capacity won by developers through the bidding route over the last six to nine months (amounting to 4-GW at tariffs ranging largely between Rs 2.00 per unit and 2.25 per unit and scheduled to be commissioned over the next 12-15-month period, it stated.

This apart, the recent surge in metal prices is also leading to upward pressure on the overall capital cost for solar power projects.

Source
ET Energy World
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