India now has a total installed large-scale solar capacity of 9,018 MW and a solar pipeline of 14,030 MW as of December 2016, with the top 10 states accounting for approximately 90% of all solar installations and pipeline, Mercom Capital Group has recently estimated.
These are Tamil Nadu, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Madhya Pradesh, Punjab, Karnataka, Maharashtra and Uttar Pradesh.
Tamil Nadu leads with 1,577 MW in-operations. In order to fulfil the state Renewable Purchase Obligation (RPO) the Tami Nadu Generation and Distribution Company (TANGEDCO) recently auctioned 500 MW solar.
The state has close to 485 MW of solar under various stages of development.
Nevertheless, the state is yet to join the Ujwal DISCOM Assurance Yojana (UDAY) which aims at financial turnaround of DISCOMs. Until then, developers will be concerned due to TANGEDCO’s history of payment delays.
However, TANGEDCO is tendering another 500 MW. To boost the transmission and evacuation infrastructure in the state, TANGEDCO has begun construction of substations. Currently, four substations are nearing completion and are expected to be completed by June 2017. Due to transmission issues, the state has curtailed solar in the past; “but, not so any more, we are well on track,” an official at TANGEDCO told Mercom.
Rajasthan’s position was recently usurped by Tamil Nadu as installation activity in the state has slowed. The state has 1,324 MW of solar in-operation with a project pipeline of 1,206 MW and could reclaim the top spot.
Developers told Mercom that in Tamil Nadu and Rajasthan, they are wary that curtailment might come back to haunt the sector. The distribution companies can be reluctant to purchase solar power due to cost higher than conventional energy.
In Rajasthan, curtailment took place earlier this year due to required system parameters. The PPAs have been delayed in the state. Earlier, the state used to sign PPAs at preferential tariffs; the program ended in March of 2016. The state is trying to fast-track the competitive bidding process and solve issues between DISCOMs and developers Mercom has gathered from Rajasthan Renewable Energy Corporation (RRECL) officials. The green energy transmission corridor, once developed, will boost the willingness of DISCOMs to sign PPAs, as they can supply to other states and will have more buyers, added the RRECL official.
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