India Solar dream relies on China s export

Polaris solar PV net news: solar photovoltaic cells caused by excess manufacturing capacity in China and other equipment prices decline, India obtained the rapid development of solar energy industry.

India Solar dream relies on China's export

India’s solar dream is closely related to its northern neighbor China. Source: BartSpeelman

India’s solar industry is in an unprecedented period of rapid development, mainly due to the rapid decline in tariff rates, increasing skills, mainly in China’s global solar photovoltaic panels and other materials supply is excessive. Although India market than the United States, China and Japan, but its pace is fastest in several major markets.

India 5.4 million-kilowatt new solar installed capacity is expected in 2016, as the world’s 4th-largest solar market. At present, the India national solar total installed capacity of 7.8 million-kilowatt. United States solar installed capacity up to 25 million-kilowatt. So the future of India bright market prospects. Energy consultancy India bridge (Bridgeto India) in its latest issue of the India solar industry guide points out: “in the United Nations climate change Conference (Paris climate summit) era, as industry costs fall, States environmental protection agenda enacted, development of solar energy industry as a whole is excellent. “Capital group in Markham (Mercom Capital Group) in its India Solar market in quarterly Dynamics says:” the current solar energy pipeline construction plan for the 22 million-kilowatt, which 13 million-kilowatt has started construction. ”

India’s solar industry is growing rapidly due to global oversupply of solar photovoltaic equipment. India bridge (BridgetoIndia), said: “recent market report showed China emerging glut of solar phenomena, particularly evident in late 2016, is likely to drive prices a major adjustment in the future. “China’s solar industry (especially secondary enterprises) had to cut prices further, and look to overseas markets.

India Solar dream relies on China's export

India Solar development prospects. Source: IntelFreePress

Investment Bank Morgan Stanley (MorganStanley) on August 2, according to a report by: “already has several leading solar equipment manufacturer announced before 2017 to improve capacity. Overall, we expect in 2016 and 10 major manufacturers of new photovoltaic cell production capacity is approximately 15 million-kilowatt, most new capacity (14 million-kilowatt) are from China. ”

Meanwhile, the market research firm IHS think domestic solar industry demand in the rest of 2016 will sharply decline. The leading information provider also pointed out that 2016 4th quarter solar PV module prices will be lower than the first half of 10%. India bridge (BridgetoIndia) that such prices diving on the India Solar market timing’s perfect, because they expected before 2017 3 months as India suffered the largest solar added capacity of a quarter of the total could be as high as 2 million-kilowatt.

[However, lower capital costs, the weakness of overseas markets and proactive policy has not brought India domestic solar industry manufacturing capacity increased. Consulting firm KPMG (KPMG) warned in a report: “India 2030 PV installed capacity will reach 100 million-kilowatt. And the absence of related manufacturing capacity will lead India imported solar equipment worth up to $ 42 billion. ”

India bridge (BridgetoIndia) in a news article stated that India has become China’s major new markets. The Agency said: “unless China domestic market demand changes, or the EU to lift trade barriers on Chinese suppliers, or solar energy prices will remain moderate in the coming quarters. ”

Low prices for imported products in China, seriously affecting the India market competitiveness of local suppliers. India bridge (BridgetoIndia) pointed out in a recent market trends article: “now India faces many domestic issues in macro terms, such as convenient business environment, infrastructure construction, energy and financial costs, raw materials and the local eco-system, and so on. If these problems cannot be resolved, then push India development of local manufacturing industry can only be a fantasy. ”

India Solar dream relies on China's export

Low import prices in China makes India the lack of competitiveness of their products. Photo: Gerry Machen

By importing materials for capacity-building activities have sharply hit India local manufacturers. To this end, the India Solar Manufacturers Association proposed to the Government impose protective tariffs and anti-dumping duties. Protective tariffs to protect local industries from the effects of surging imports. When overseas importers to below the level of average market prices for the products sold, to which the importing country has the right to levy anti-dumping duties.

However such protests may not be valid. Sydney Institute of energy economics and financial analysis (Institue for Energy Economicsand Financial Analysis) Tim ˙ Buckley (Tim Buckley), told reporters: “these poor small India solar module manufacturer’s statement and no credibility. Early reports that the competitiveness of these products does not have the market with poor quality. ”

Strengthening the domestic market

However, things change. Buckley (Buckley), said: “I think India’s Energy Minister Pi Youshi ˙ Goyal (PiyushGoyal) has seen the future development in the right direction. Concessions, for example through appropriate capital and incentives to reduce construction costs, promote Trina (Trina Solar), the solar Group (CanadianSolar), constant group (Hanwha Solar) and first solar (First Solar) and a number of global solar manufacturing companies and India local companies to set up joint ventures, common in India building new modern production equipment. I remember Tesla (Tesla) company for Super battery plant in Nevada (Gigawatt) won us $ 1 billion to encourage concessions. So the forerunner in encouraging new industries building and removing barriers, nothing is routine, there is nothing new in stuff. ”

Clean energy think tank kuwasuda Foundation (Vasudha Foundation) Chief Executive Officer siliniwa ˙ kelixinaxiwami (Srinivas Krishnaswamy) thought that the India local factories could not cope with the sudden growth in demand, so solar panels imported from China are inevitable.

Kelixinaxiwami (Krishnaswamy) told reporters: “from which, for its part, India Government did by capping domestic supply standard provides some support for local businesses. However, the key lies in India domestic manufacturers in terms of capacity and depth problems. If the solar industry continues to grow, we hope that the increased investment in manufacturing industry in the future. ”

Buckley (Buckley) pointed out: “the next India every year new solar module demand will probably reach more than 10 million-kilowatt, so India Prime Minister Narendra ˙ Moody (Narendra Modi) wanted to build a number of new power stations in order to realize localization supply chain layout ‘ India developing ‘ (MakeinIndia) still has bright prospects. ”

Unless and until the above vision can achieve, or India may have to rely on imports for the rapid development of solar energy industry equipment, particularly equipment imported from China’s support. India bridge (BridgetoIndia) Deputy Director jiasimite ˙ Khurana (Jasmeet Khurana) told reporters: “India’s large-scale solar projects launched, and associated equipment there was oversupply and price declines, at least this coincidence seems to us to be good. So we should take advantage of this opportunity. ”

English text published in the third China dialogue website

Translation: Estelle

Original title: India Solar dream relies on China’s export

Posted in Solar Charger.