Q1 2022 India RE update

Q1 2022 India RE update (Jan-Mar 2022)

Report Summary

Installation trends

  • Cumulative: India’s renewable capacity installation reached 109.89 GW as of March 31, 2022. Solar continues to be the major contributor with 49% share in total renewable mix, followed by wind with 37% share. The current pipeline of solar, wind and hybrid projects are around 64 GW which is likely to be commissioned in the next 4-5 years. Another 36 GW of projects are under bidding phase i.e., where tenders have been issued but auctions are not yet completed.
  • Yearly: In Financial Year (FY) 2022, about 10.15 GW of new utility-scale solar capacity was installed in India. Compared to FY 2021 period, the FY2022 installations is about 2.85 times higher. Rajasthan (6180 MW), Gujarat (1908 MW), Tamil Nadu (529 MW) and Telangana (493 MW) were the leading states with maximum large-scale solar installations during this period.
  • Quarterly: In Q1 2022 (Jan-Mar 2022), about 4.09 GW of utility scale solar capacity was installed. This is about 71.8% higher than the previous quarter installations. In wind, about 274.88 MW were added, which is 29.7% higher than the Q4 2021 installations. In rooftop solar, about 459.8 MW were added, which is about 33% less than the previous quarter.

Projections

  • Yearly: Approximately 16 GW of new utility scale solar capacity and 3.3 GW of new wind capacity is expected to be installed in the country in FY2023. 
  • Quarterly: The next quarter i.e., (Q2 2022) is expected to see a significant increase in installations, with around 0.85 GW of wind and 1.8 GW of hybrid capacity addition. Additionally, around 3.5 GW of new utility scale solar capacity is expected to get commissioned in the second quarter of 2022.

Quarterly market shares

  • Inverters: In Q1 2022, Huawei was the leading inverter supplier followed by Sungrow and Sineng.  
  • Modules: In the first quarter of 2022, Jinko is the leading module supplier contributing 24% share of all shipments in India in Q1 2022. Nearly 85% of the module shipments in India in this quarter were of high-efficiency mono PERC modules.

Tenders

  • In Q1 2022, 57 new tenders aggregating to a total capacity of 6.8 GW were issued across renewable segment.
  • About 2825 MW solar capacity were auctioned and allotted to various RE developers in the first quarter of 2022. Fortum won the maximum solar capacity of 800 MW followed by Ayana Renewables (600 MW) and Adani (150 MW).
  • The lowest-winning solar tariff of Q1 2022 was INR 2.29/kWh, discovered under GUVNL’s 500 MW Phase XIII solar tender.

Investments

The investment flow in RE sector in Q1 2022 was more than $2580.86 million. More than 421 MW RE assets were acquired in the first quarter of 2022 with total investment of more than $255 million. Bonds and equity investments worth $1737 million and $401.7 million respectively, were also raised by various players.


Module price trends

In the Indian market, theFoB price for Chinese modules (excluding GST and safeguard duty), was about 22-24 cents/ Wp in Q1 2022.This has increased by 2.63% on QoQ basis. Prices for mono modules is about 27-28 US cents/ Wp in Q1 2022.


Import Exports trends

In March 2022, India imported solar cells and modules worth INR 46048 million, which is the highest in last one year. Most developers stocked the modules in this quarter for their projects expected to commission in later half of 2022 owing to 40% BCD application on imported modules from April 1, 2022 onwards.

GTAM Traded Volume 


The IEX and PXIL together traded a total of 1310.4 MU in GTAM in Q1 2022, which is 5.9% higher than the volume traded in the fourth quarter of 2021. The average trade price in IEX-GTAM for Q1 2022 was INR 5.33/kWh, while for PXIL it was INR 5.36/kWh. This is approximately 21% and 19% higher on QoQ basis.

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