India to add 2,000MW solar capacity in January-March,major projects in states like A.P and Telangana

India will add 2,000 megawatts of solar power capacity between January and March, which is equal to the capacity added during the entire 2015.

The major projects expected to be completed in these three months are in Andhra Pradesh, Telangana, Tamil Nadu and Madhya Pradesh. These projections by solar consultancy Bridge to India indicate that the country will comfortably surpass its target of 2,000 MW of solar projects for 2015-16. Already around 1,100 MW have been added in the nine months to December 2015.

The target for 2016-17 is much stiffer at 12,000 MW. In the first three quarters up to December, India is expected to add another 2,839 MW of capacity. This means that over 9,000 MW will have to be added in the last quarter if the target is to be met. The majority of projects completed during the year will be in the five southern states. India wants to achieve 1 lakh MW of solar power by 2022.

Solar tariffs fell drastically in 2015, culminating in an all-time low of Rs 4.63 per unit offered by both Sun Edison and SB Energy while bidding for separate projects - of 500 MW and 350 MW respectively - for NTPCBSE -2.06 % in Andhra Pradesh. There is disagreement over whether they will fall any further in 2016. 'Maybe in the middle to long-term, a reduction might take place due to a fall in equipment pricing,' said Vinay Rustagi, managing director, Bridge to India.'A 10-12 per cent drop in equipment prices is expected.'

ET