According to a source, India is considering canceling 3-4 gigawatts (GW) of solar tenders that were rushed through to beat the country’s new import rules. The Indian government had announced plans to impose stricter import norms on solar panels and modules in an effort to boost domestic manufacturing. As a result, several solar developers hurried to secure tenders before the new rules took effect.
The source stated that the tenders in question were awarded in the last few months, and the projects were likely to use imported solar panels. However, with the new rules in place, the government is re-evaluating these tenders and may cancel them to ensure compliance with the new regulations. The cancellation of these tenders could impact the plans of several solar developers, including foreign companies that had bid on the projects.
India’s new import rules aim to reduce the country’s dependence on Chinese solar panels, which currently account for a significant portion of the Indian market. The government wants to encourage domestic manufacturing and create jobs in the sector. To achieve this, the rules impose stricter quality standards and require solar panels to be tested and certified by Indian testing agencies.
The potential cancellation of the solar tenders is part of a broader effort by the Indian government to promote domestic manufacturing and reduce dependence on imports. The government has also announced plans to impose tariffs on imported solar panels and modules, which is expected to make domestic products more competitive.
The move is seen as a positive step for Indian solar manufacturers, who have been struggling to compete with cheaper Chinese imports. However, it may also lead to higher costs for solar developers and potentially slow down the growth of the Indian solar sector. The source noted that the cancellation of the tenders would not affect the overall target of achieving 280 GW of solar power capacity by 2030, but it may lead to some short-term disruptions.
Overall, the Indian government’s decision to cancel solar tenders that do not comply with the new import rules is a significant development in the country’s efforts to promote domestic manufacturing and reduce dependence on imports. While it may lead to some short-term challenges, it is expected to have long-term benefits for the Indian solar sector and the economy as a whole.