Q2 2021 India RE update (Apr-Jun 2021)
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Report Summary
Installation trends
- Cumulative: As of June 30, 2021, the total renewable capacity installation of India reached 96.95 GW. Solar is the major contributor with 44% share in total renewable mix, followed by wind with 41% share. The current pipeline of solar, wind and hybrid projects stands at around 56 GW which is likely to be commissioned in the next 3-4 years. Another 25 GW of projects are under bidding phase where tenders are issued but auctions are not completed.
- Yearly: In H12021, about 3.5 GW of new utility-scale solar capacity was added in the country, which is 63% higher than the H12020 installations. Rajasthan, Uttar Pradesh, Gujarat and Andhra Pradesh were the leading states with most of the large-scale solar installations during this period.
- Quarterly: In Q2 2021 (Apr-Jun 2021), 1.5 GW of utility-scale solar capacity was installed. This is about 30% lesser than the previous quarter installations. In wind, about 475 MW were added, which is 56% lesser than the Q1 2021 installations. In rooftop solar, about 417 MW were added, which is 55% lesser than the previous quarter.
Projections
- Yearly: About 10.3 GW of new utility-scale solar capacity and 2.8 GW of new wind capacity is likely to get installed in 2021.
- Quarterly: In Q3 2021, installation activity is likely to further pick up with an estimate of 3.1 GW of new solar capacity and 1 GW of new wind capacity addition.
Quarterly market shares
- Inverters: In Q2 2021, Sineng was the leading supplier in central inverter category and Huawei was the leader in string inverter category.
- Modules: In this quarter, Longi is the leading supplier contributing 58% share of total shipments. Nearly 73% of the module shipments in India in Q2 2021 are high-efficiency mono PERC modules.
Tenders
- In Q2 2021, 33 new tenders aggregating to a total capacity of 10.74 GW were issued across the solar and wind segment.
- In the rooftop/small-scale solar segment, 12 new tenders of 1473 MW were issued in Q2 2021. Out of which the majority portion of 1376 MW capacities were issued under component – A of KUSUM scheme.
- Auction of 550 MW of tenders was completed in the last quarter. Tata Power won the maximum solar capacity (250 MW) followed by SJVN (175 MW) and Rural Electrification Corporation Ltd (REC) (125 MW).
- In Q2 2021, the lowest solar tariff of Rs 2.51/kWh was discovered in MAHAGENCO 250 MW Solar tender.
Investments
The investment flow in the RE sector in Q2 2021 was more than US$6085 million. Acquisition of the entire RE portfolio of SB Energy by Adani Green Energy was the biggest deal during this quarter with a valuation of nearly US$3500 million.
Module price trends
In the Indian market, the price for Chinese module suppliers (excluding GST and safeguard duty), was about 22-24 cents/ Wp in Q2 2021 for multi-crystalline modules. This has significantly increased by 28% on QoQ.
Import Exports trends
In Q2 2021, the solar export and import activity declined by 32% and 10% respectively on a QoQ basis.