Source: India could cancel 3-4 GW solar tenders to avoid import restrictions.
An industry source said on Friday that at least 3-4 gigawatts in Indian solar projects could be cancelled because the government has directed clean energy agencies reissue bids to bypass import restrictions which will take effect next year.
In a circular issued on Friday, the country's renewable-energy ministry asked agencies to cancel and reissue some solar tenders. However, it did not identify the agencies involved or reveal the amount of power that was expected to be produced by these projects.
Renewable energy agencies are intermediaries that act between the government, clean energy developers and project tenderers. The electricity generated by the projects is then sold to the state-owned power utilities.
In June 2026, India’s Clean Energy Policy will require that developers of government-funded projects use only locally made modules and cells. The majority of Indian companies use solar cells made in China.
The government allowed imported cells to be used in projects that submitted bids before August 31.
The Indian Solar Manufacturers Association sent a letter to the government in late August. It was reviewed by, and the body claimed that the clean energy agencies had abused this exemption. They issued tenders with unusually small bid windows in order to secure cheaper imports ahead of the deadline.
A source in the industry said that the government had found that nearly 3-4 gigawatts of projects were misusing the exemption. Sources were not allowed by the media to be identified.
In a circular issued on Friday, the Ministry said that some agencies only gave companies seven days to submit their bids.
The ministry stated that this short window could have been used by importers to bypass the restrictions.
The agencies will have 15 days to submit a report.
SBI Caps stated in an August research note that India would be self-sufficient only in solar cells by March 2027. Effective production may be lower during the first quarters following the restriction. Reporting by Sethuraman NR, Editing by Harikrishnan Nair & Sahal Muhammed
(source: Reuters)
