Module Scarcity Delaying Solar Projects In India, Hints NLC India

Module Scarcity Delaying Solar Projects In India, Hints NLC India

Indian Public Sector Utility (PSU), NLC India has hinted that the delay in the supply of domestic solar modules in the country is leading to delays in solar projects. The top management of the firm in a recent investor’s call revealed that the demand for domestic modules has led to a shortage of timely delivery of modules for solar projects not for the company but for the whole sector.

When an investor asked for the reason behind the delay in adding 300 MW of solar energy capacity as planned, M Prasanna Kumar, CMD of the publicly listed company, blamed it on the shortage of solar modules. NLC India said that the EPC works for the proposed project were given to Tata Power.

“This 300 MW we got under CPSU scheme and the main condition for the CPSU scheme is the modules of domestic nature need to be fitted in this plant of 300 MW. And as you know there is a scarcity of modules in the country. That is the reason why not only NLCIL solar project, many other projects got delayed,” the CMD said.

He also added, “We awarded this EPC contract to Tata Power and they started their module manufacturing in the state of Tamil Nadu. They assigned the production around 80 MWs for this project in the current financial year. All other activities other than modules they are complete. For the entire 300 MW all other activities, inverters, MS structure, everything is ready. Only it is waiting for the modules.”

The company is optimistic now to add 80 MW of capacity. It said that in the first quarter of the next financial year, the balance of 220 MW of capacity will be added. NLC India currently has a total of 1.4 GW of renewable energy capacities but has planned to ensure that its total capacity reaches 10 GW by 2030.

“Our capacity is 1.4 GW. And we are targeting to take it to 10 GW, while the entire country is targeting doubling and tripling their capacity. We are targeting to increase our renewable capacity by 7 times. So, we are open to all types of, we are exploring all revenues for adding this capacity. Already 2.5 GW renewable capacity works are already in progress and we are exploring all the possibilities including the JV which we formed with Rajasthan, the JV which we formed with Assam and we are exploring various possibilities to have JV with the Orissa Government also and many other states are also in line. So, we are exploring all the avenues where we can add renewable capacity to reach our target of 10 GW by 2030,” he added.

The Ministry of New and Renewable Energy (MNRE) last calendar year had imposed the provisions of the Approved List of Models and Manufacturers (ALMM). As per the mandate, for government projects, the developers were allowed to use only domestically produced solar modules, enlisted under ALMM.