India’s Union Ministry of New and Renewable Energy has instructed clean energy agencies to cancel and reissue solar projects tenders that were reportedly hurriedly floated to bypass certain regulatory requirements, reported Reuters, citing a circular.
Most domestic developers rely on low-cost Chinese solar cells, but under India’s clean energy policy effective from 1 June, only locally manufactured modules and cells can be used in Indian government-backed projects.
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The renewable energy agencies, which function as intermediaries between the government and private sector, are responsible for issuing tenders for solar projects.
Once completed, the electricity generated will be supplied to state-run power utilities.
According to the energy ministry’s circular, certain agencies allowed companies just seven days to submit their bids.
This circular, however, did not specify which agencies were involved or the value of the projects in question.
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By GlobalDataAccording to the ministry, this brief timeframe might have been utilised to circumvent a regulation mandating that government-supported solar initiatives must employ domestically produced solar cells.
The ministry has now given these agencies 15 days to report back on the actions taken to address the issue.
India aims to become largely self-sufficient in solar cell production by March 2027.
Last month, the ministry launched the National Policy on Geothermal Energy, introducing a framework to develop the country’s largely untapped geothermal resources.
The policy is intended to complement the country’s renewable energy mix, bolster baseload supply, and support the country’s commitment to achieving net-zero emissions by 2070.
The government also reduced goods and services tax on renewable energy devices from 12% to 5% from 22 September.
