Legal

With continuous decline in costs of solar power generation, the chorus for shortening the 25-year power purchase agreement (PPA) period is growing louder.

Solar installations picked up significantly in the January-March period, with 1.89 GW of utility-scale PV projects providing 76% of the quarterly total. Rooftop PV accounted for the remaining 590 MW of new capacity additions. Looking ahead, Bridge to India expects the uptrend to continue, as the first quarter ended with a record amount of capacity in the national pipeline.

Having acted against Turkey, the Trump administration has removed India too from the list of nations exempt from import tariffs on solar cells and modules.

The import of secondary cells and batteries of lead-acid and nickel-based chemistries will be allowed subject to IEC 61427 certification of the product and certificate issued by the MNRE, along with an undertaking from the supplier that the products will be utilised for solar PV power projects only.

The court appears to have sided with solar developers who are complaining about a revision made late last year which ensured only 70% of the costs associated with PV project establishment would qualify for a discounted rate of goods and services tax.

India’s Ministry of New & Renewable Energy (MNRE) has issued guidelines for solar PV inverter manufacturers to get their products tested and approved by Bureau of India Standards (BIS) certified labs. These guidelines apply to off-grid, grid-tie and hybrid inverters of capacities up to 150 KW.

Rules on the composition of product containers, production line sample sizes for testing and technical information will come into force for manufacturers and distributors operating across the nation.

In the latest tariff spat to afflict the solar world, the Directorate General of Trade Remedies will investigate a claim steel products coated with aluminum and zinc are being dumped by Far Eastern manufacturers.

“This case is an economic dispute arising from complicated domestic and foreign situations such as India’s 25% security tax and China’s ‘May 31’ Policy. It is not our company’s unilateral breach of contracts. Any economic disputes arising from commercial activities shall be handled by the court and relevant judicial institutions,” said the Chinese PV module supplier a week after India’s Ministry of New and Renewable Energy (MNRE) issued advisory against procuring solar modules from CSUN.

Market-based scheduling will enable flexibility in grids to facilitate renewable energy generation. However, the framework proposed by Central Electricity Regulatory Commission (CERC) doesn’t indicate any change in the payments mechanism for renewable projects, says the ratings agency.