Projects under batch II of JNNSM fear completion

- Advertisement -

Many of the batch II solar projects under Phase I of India’s Jawaharlal Nehru National Solar Mission (JNNSM) have been deemed a risky proposition in a new research report by India based CRISIL Research, says a PV Magazine report.

There are concerns that new developers won’t be able to complete their photovoltaic park plans due to the low bids submitted. The organisation stated that falling photovoltaic module prices and overcapacity led by Chinese module suppliers have impacted heavily on capital costs for projects. “In 2011, the capital costs of Solar Photovoltaic (PV) projects fell by 30 per cent, following a 50 per cent decline in the prices of solar PV modules,” wrote the analysts.

They said, however, that due to the sharp margin erosion this prompted, combined with increasing industry consolidation, module price drops are expected to slow this year, meaning that capital costs should decline by just 10 to 13 per cent, to Rs 87 million to Rs 90 million per megawatt this year.

- Advertisement -

However, anticipating bigger decreases, some project developers submitted aggressive bids to the JNNSM’s Phase I Batch II program–as low as Rs 7.49 per Watt, said CRISIL – which will place pressure on their margins unless they can access low cost foreign debt.

“For healthy equity internal rate of returns (IRRs) of around 15 per cent, a levelised tariff of Rs 9 per unit is necessary, assuming a plant load factor of 19 per cent and typical debt equity of 70:30, with borrowing costs of nearly 13 per cent,” stated the report. However, as around half of the bids have been below Rs 9 per unit, many of the investments are highly risky.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Buzz

Near-Eye Display Shipments for XR Applications Set to Grow: Omdia

0
XR applications consist of Augmented Reality (AR), Virtual Reality (VR) and Mix Reality (MR) The report expects the near-eye display for the...

Tamil Nadu To Develop $100B Electronics Industry By 2025

0
The state government intends to encourage the development of private ESDM parks with a common infrastructure, amenities and waste-handling facilities to develop the state's...

Hyperview Picks Ambarella’s Automotive AI Central Domain Controllers for HPC Autonomous Driving Platforms

0
Ambarella’s CV3-AD family of AI central domain controller systems-on-chip will be used to develop autonomous driving high-performance computing platforms Through this initial cooperation,...

Exclusive

Near-Eye Display Shipments for XR Applications Set to Grow: Omdia

0
XR applications consist of Augmented Reality (AR), Virtual Reality (VR) and Mix Reality (MR) The report expects the near-eye display for the...

Pandemic Boosted Organic LED (OLED) Tablet Penetration

0
Samsung, making OLEDs since 2014, leads the way Emerging tech and declining manufacturing costs making OLED popular Apple expected to bring OLED iPads...

India’ 22: Premium Segment Share Up by 11%; Overall Fall in Smartphone Shipments

0
Smartphone shipments fell 9% YoY in 2022 in India The premium segment brought 35% of total smartphone market revenue in 2022; Apple led...

Important Sectors

Near-Eye Display Shipments for XR Applications Set to Grow: Omdia

0
XR applications consist of Augmented Reality (AR), Virtual Reality (VR) and Mix Reality (MR) The report expects the near-eye display for the...

Hyperview Picks Ambarella’s Automotive AI Central Domain Controllers for HPC Autonomous Driving Platforms

0
Ambarella’s CV3-AD family of AI central domain controller systems-on-chip will be used to develop autonomous driving high-performance computing platforms Through this initial cooperation,...

STMicro Designs Chip Using Synopsys AI, Azure Cloud

0
With more complicated designs, chipmakers are rushing to use artificial intelligence (AI) to fasten the chip design and development process. European chipmaker STMicroelectronics and semiconductor...

DroneBase Secures $55 M to Build Advanced Inspection Software

0
Valor Equity Partners invested $55 million in the drone imagery firm, which is working on building an AI-enabled asset-monitoring software development  DroneBase recently...

Tesla, Ford Price Cuts Yield No Increase In Production, Says Aptiv

0
Aptiv said that supply disruptions and inflationary cost impacts are likely to persist in 2023. Executives at Aptiv PLC said that the price cuts by...

Manufacturing

Tamil Nadu To Develop $100B Electronics Industry By 2025

0
The state government intends to encourage the development of private ESDM parks with a common infrastructure, amenities and waste-handling facilities to develop the state's...

STMicro Designs Chip Using Synopsys AI, Azure Cloud

0
With more complicated designs, chipmakers are rushing to use artificial intelligence (AI) to fasten the chip design and development process. European chipmaker STMicroelectronics and semiconductor...

Tesla, Ford Price Cuts Yield No Increase In Production, Says Aptiv

0
Aptiv said that supply disruptions and inflationary cost impacts are likely to persist in 2023. Executives at Aptiv PLC said that the price cuts by...
EV

Powertrain Developer Vitesco Technologies Joins Polestar 0 Project

0
Vitesco will work to make a zero-carbon emissions inverter for the OPolestar 0 project. German electric mobility solutions provider Vitesco Technologies has joined the Polestar...

IESA Conducts National Seminar on Future of Semiconductors in India

0
The two-day event--to discuss and formulate the future of semiconductors and ESDM space in India--is scheduled for Feb 07 & 08, at PDEU, Gandhinagar India's...