POWER July 2021 - 7

GLOBAL MONITOR
stalled power generation capacity as of
the end of March. The group in its " Q1
2021 India Solar Market Update, " published
in late May, reported that solar
installations were up 88% year-over-year,
compared to the 1,090 MW added in
the first quarter of 2020. The group said
the addition of solar generation capacity
in the January-March 2021 period was
the highest in a quarter since the third
quarter of 2019. Mercom reported that
large-scale solar projects represented
1,749 MW of installed capacity in Q1,
with rooftop installations accounting for
307 MW. The group in its report said
much of the increase in first-quarter
projects came as developers completed
their delayed installations from last year.
Commercial and industrial electricity
customers also were installing rooftop
solar, " taking advantage of cost savings
during challenging market conditions, "
the report said.
There may be a bump in the road,
though, due to COVID-19. Bridge to India,
a renewable energy consultancy,
in its recent " India Solar Compass Q1
2021 " report, said it expects the country
will add 1.35 GW of utility-scale solar
in the April-June period, down 43%
from its initial estimate for 2.35 GW. The
group said installations will likely recover
in Q3, with capacity additions expected
to reach 2.47 GW.
" With the second wave of the pandemic
hitting the country, the industry is
battling solar component price increases
and volatility. Even more concerning is
the uncertainty in procurement as shortages
are widespread. Policy restrictions
and duties have added to the rising costs
and unpredictability, " said Raj Prabhu,
CEO of Mercom Capital Group. Mercom
expects India will add about 7 GW
of new solar power capacity this year,
what it called a " medium case " scenario
as project timelines continue to be extended
due to the pandemic.
The report said the second wave
of COVID-19, and its variants, which
brought lockdowns to many regions of
the country beginning in late April, will
again bring construction delays due to labor
issues and disruptions to equipment
supply chains. Mercom's researchers in
a news release noted, " The average selling
prices of solar modules have risen
sharply along with other components,
including iron, copper, aluminum, and
steel. Freight charges are high all over
the world, and the dearth of shipping
containers is widespread. The shortage
and availability of solar glass and backsheets
continue to be a challenge. "
Said Prabhu: " Due to the targeted
lockdowns, this time around, disruptions
and labor issues are not as widespread
as last year. However, most of the lockdowns
are in important solar states
like Rajasthan, Maharashtra, and Uttar
Pradesh which will significantly impact
installation totals this year. " Mercom
said that Rajasthan and Uttar Pradesh
were the top states for solar installations
in the first quarter of 2021.
Mercom noted that the surge in demand
for rooftop solar came primarily
from industries looking to reduce operating
expenses as the pandemic brought
financial challenges. Prabhu, though,
said supply chain disruptions-along with
higher prices for solar modules-continue
to impact the pace of construction. " The
solar industry is grappling with how to
move forward amid so much uncertainty, "
Prabhu said. " Bidding for auctions in the
future will be extremely challenging, and
developers must give themselves a lot of
room to factor in the risks and price volatility.
This is the first time we have seen
module prices rise four quarters in a row
since the last 5-6 years. Bidding low in
anticipation that module prices will perpetually
fall is an extremely risky strategy
in today's market. "
-Darrell Proctor is a senior associate
editor for POWER.
The Vast Potential of Energy
Storage for Nuclear
In a September 2020 report from the
Clean Energy Ministerial's Nuclear InJuly
2021 | POWER
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POWER July 2021

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