According to the Austin, TX based research firm, Mercom Capital Group LLC, India has installed 557 MW of solar photovoltaic (PV) and concentrating solar power (CSP) to date in 2013.
The Company also finds in it's report Indian Solar Market Update, only 60% of the targeted capacity for Phase 1 of the nation's National Solar Mission (NSM) has been installed, despite a May 31st, 2013 deadline for Phase 1 and also a 12% increase in solar power installations will be seen in 2013 compared to previous year.
CSP Lacking the Power:
Mercom CEO Raj Prabhu notes only 50 MW of the 470 MW of CSP due is expected to be commissioned by the end of 2013, with the rest granted a 10 month extension.
Prabhu also notes that domestic content requirements continue to be pursued in the second phase of the NSM. These have prevented PV and CSP components from being sourced at the most effective prices, despite procurement methods intended to produce the lowest costs.
Finally, he finds that the Viability Gap Funding (VGF) mechanism proposed for Phase 2 provides no incentive to build more productive projects, which he calls a “recipe for disaster”.
Prabhu also notes that the various state programs have been much more successful than the NSM, with state and other policies responsible for 1,170 MW of new PV and CSP, as opposed to 591 MW for the NSM.
By far the most successful state is Gujarat, which has installed 857 MW of PV plants and has no new policies announced.
