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Solar capital cost to go up : ICRA
Why is it in the news ?
- According to ICRA, the imposition of safeguard duty by the government on imported photovoltaic modules and rupee depreciation are estimated to increase the capital cost of solar power projects by 20-25%.
More in the news
- In a report on the wind and solar sectors, ICRA said while bidding activity has remained strong, several key concerns remain, including rising interest rates.
- The rising interest rates are putting pressure on the bid tariffs as well as on the viability of the wind and solar projects having tariffs less than Rs.3 per unit.
- Another challenge faced by the renewable energy sector is that winning developers in recent bids are having trouble in securing connectivity and open access to inter-state transmission network.
- This has resulted in cancellation or capacity downsizing of some of the bids.
- In order to protect the domestic solar industry, India has imposed a 25 percent safeguard duty on solar cell imports for a year to July 29, 2019.
Photovoltaic module
- Solar panel refers to a panel designed to absorb the sun's rays as a source of energy for generating electricity or heating.
- A photovoltaic (in short PV) module is a packaged, connect assembly of typically 6×10 solar cells.
- Solar Photovoltaic(PV)absorbs sunlight as a source of energy to generate electricity.
- Photovoltaic modules constitute the photovoltaic array that is made up photovoltaic system that generates and supplies solar electricity in industrial and residential areas.
Source
The Hindu.