Taipei, Tuesday, January 27, 2015 23:19 (GMT+8)
mostly cloudy
Taipei
15°C
Commentary: Grid parity in India may happen sooner than expected
Jackie Chang, DIGITIMES, Taipei [Friday 27 April 2012]

India has been seen as one of the markets with most potential for the solar industry as demand in Europe weakens. A recent article from The Economist, "Solar Power In India: Waiting for the Sun", has stated that the India market might just boom.

The article indicated that power firms in India that produce electricity by burning coal have been forced to buy pricier coal because "the state local monopoly is unable to dig up enough of the black stuff [coal]". This can become an incentive for power companies to turn to solar power. The cost of solar PV systems has been falling since third-quarter 2010, and compared to the pricier coal, it is possible that the price of solar in India will be similar to conventional energy by 2016.

Furthermore, according to financial institutions, the government has vowed to install 20GW by 2022. Current installations in India are about 1GW.

According to PV 2012-Expectations for the global solar market, a new report from Digitimes Research, India's installations in 2012 are likely to reach 1.4GW because both subsidies from the federal government and the Gujarat state government will increase. In addition, new installations will be added in states such as Rajasthan and Karnataka. These states have been providing lucrative subsidies for solar PV installations, according to Digitimes Research.

Nevertheless, there are some concerns about the solar market in India. According to The Economist, grid connections and shortages of water to wash panels are two of the most common concerns. Also, despite lucrative subsidies provided by state governments, the federal government uses "reverse auctions" to promote solar PV installations. Reverse auctions mean giving operating rights to the solar firms that can produce power at the lowest cost. Many people doubt that this mechanism will help the firms to make money.

Digitimes Research noted that the solar market in India is quite different from other emerging solar markets such as the US and Japan. The solar market in India is highly price-competitive, and hence has been filled with low-price products, similar to in the China market.

This cause a backlash for solar firms, but may also mean that grid parity can be achieved in India sooner than expected.

solar panels

India government vows to have 20GW of solar installations by 2022
Photo: Digitimes file photo

Realtime news
  • Taiwan market: Sony Mobile to focus on mid-range to high-end smartphone segment

    Mobile + telecom | 1h 7min ago

  • Acer to sell Liquid Z200 via cooperation with Bookoff in Japan

    Mobile + telecom | 1h 24min ago

  • Universal Display and LG Display sign OLED technology license agreement

    Displays | 1h 25min ago

  • Foxconn to assist China handset brands expanding sales in emerging markets in 2015

    Mobile + telecom | 1h 26min ago

  • TCL reports 3.5% decline in LCD TV shipments for 2014

    Displays | 1h 28min ago

  • Spansion and Macronix reach settlement agreement

    Bits + chips | 1h 34min ago

  • Demand for fine-pitch LED display panels growing, but prices will fall, say Taiwan makers

    LED | 1h 37min ago

  • Lite-On Semi looks to flat performance in 1Q15

    Bits + chips | 1h 40min ago

  • Silicon Motion reports record 2014 sales

    Bits + chips | 1h 51min ago

  • Universal Display and LG Display announce long-term OLED patent license and supplemental material purchase agreements

    Before Going to Press | 2h 11min ago

  • Digitimes Research: LG Chem showcases highest lumen-price ratio OLED lighting panel at Lighting Japan 2015

    Before Going to Press | 2h 21min ago

  • Nanya nets NT$11.77 per share for 2014

    Before Going to Press | 2h 22min ago

  • Inotera reports record revenues and profits for 2014

    Before Going to Press | 2h 29min ago

  • Prices for non-China/Taiwan-made solar cells fall due to US lowering tariffs

    Before Going to Press | 2h 30min ago

  • Huawei aims to ship 100 million smartphones in 2015

    Before Going to Press | 2h 31min ago

  • Spansion and Macronix reach settlement agreement

    Before Going to Press | 2h 32min ago

  • Taiwan market: Xiaomi ships 100,000 smart bracelets in less than 2 months

    Before Going to Press | 2h 36min ago

  • PTI profits soar in 2014

    Before Going to Press | 2h 37min ago

  • Taiwan market: Sony Mobile to focus on mid-range to high-end smartphone segment

    Before Going to Press | 2h 51min ago

  • Intel cooperates with Spreadtrum, Fuzhou Rockchip to tap China mobile chip solution market

    Before Going to Press | 2h 52min ago

  • Acer BYOC to help Taiwan small app developers enter international markets

    Before Going to Press | 2h 59min ago

  • Acer to sell Liquid Z200 via cooperation with Bookoff in Japan

    Before Going to Press | 3h 47min ago

  • IoT opportunities reliant on dependent developments, say Taiwan makers

    Before Going to Press | 3h 50min ago

  • Sharp estimates LCD TV shipments to reach 6 million in fiscal 2014-2015

    Before Going to Press | 3h 51min ago

  • Digitimes Research: Taiwan shipments of large-size TFT LCD panels reach 66.99 million in 1Q15

    Before Going to Press | 4h 5min ago

Pause
 | 
View more
2015 China IC design market forecast
DIGITIMES Marketing Services
DIGITIMES Translation Services
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.