Scatec, a company based in Norway and ACME Solar Private Limited, based in India, have decided to put their 900 MW solar power project in India on hold due to supply chain bottlenecks and rising import duties. The project is worth $400 million. Acme is developing a solar plant in Rajasthan, and Scatec holds a 50 per cent stake in it. The project was supposed to be finished in 2022.
In the Union Budget, the Central Government has decided to allocate Rs 195 billion to boost its solar PLI scheme to push solar equipment manufacturing as the country seeks to deploy 280 GW of solar capacity by 2030. India has decided to levy customs duties on solar modules and solar cells to cut its dependence on foreign imports and boost local manufacturing.
In December 2021, Ayana Renewable Power Private Limited and ACME Solar Holdings Private Limited announced the closure of a deal as part of which ACME will sell 100 per cent equity stake in an operational 250 MW ac solar project to Ayana. With this transaction, Ayana is now developing and managing close to 3 GW of renewable energy.
REGlobal’s Views: IPPs have been facing challenges in executing large solar power projects in India especially in terms of transmission, land acquisition and the uncertain policy environment. The recent imposition of basic custom duties and related supply chain issues have further complicated matters
