India warns renewable energy agencies against rushing solar tenders

According to a circular published on the ministry's website, India's Ministry of Renewable Energy has instructed clean energy agencies in India to cancel and reissue bids for government-funded projects that have been rushed to completion to circumvent rules.

The majority of Indian companies use solar cells made in China, which are cheaper. However, the Clean Energy Policy of India, effective June 1, requires developers to use only locally produced modules and cells.

Renewable energy agencies are intermediaries that act between the government, private actors and tender projects. After the projects have been built, electricity is sold to the state-owned power utilities.

The circular from the Ministry of the Interior does not specify which agencies or projects were involved, nor do they provide details about the agencies that gave the companies seven days to submit their bids.

The ministry stated that this short window could have been used in order to circumvent a rule requiring government-backed solar project to use domestically produced solar cells.

The agencies will have 15 days to submit a report on their actions.

SBI Caps stated in an August research note that India would be self-sufficient only in solar cells by March 2027. The initial production levels could also be lower. Reporting by Sethuraman NR, Editing by Harikrishnan Nair

(source: Reuters)