Solar thermal exempt from Indian import duty

Share

"In order to fully realize our potential in the realm of solar energy, solar thermal projects need encouragement," stated Pranab Mukherjee. "I propose to fully exempt plant and equipment, etc. for the initial setting up of such projects from special countervailing duties (anti-subsidy import duty)."

According to research company, Bridge to India, the Indian solar thermal sector has "significantly lagged behind" its photovoltaics counterpart. To date, it explains, just 8.5 megawatts (MW) worth of concentrated solar power (CSP) have been installed in the country, compared to 481.48 MW worth of photovoltaics.

There is also said to be no domestic manufacturing base for CSP equipment, and only "a handful" of international suppliers. "As such, developers are finding it difficult to find reliable, low-cost options, a necessity to make their projects viable at the low tariffs following the NSM [National Solar Mission] auctions in the year 2011. With an absence of CSP technology in India and a lack of projects for reference, banks are exceptionally wary of funding CSP projects. This has led to stunted growth of the Indian CSP market," explained Bridge to India.

Another reason why the CSP market has not taken off as much as photovoltaics, it said, is due to water shortages in the country. "CSP as a technology faces water issues that will require … developers [to] come up with creative plant cooling solutions. There is also consternation about the 30 percent local content requirement," continued the statement.

Overall, Bridge to India believes that the announcement is positive, and will help to lower CSP project costs.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

Elastocalorics could replace heat pumps, air conditioning systems

16 July 2024 Elastocalorics have the potential to replace current air conditioning and heating systems, offering significant energy savings when paired with techno...

Share

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.