The last two years were slow for India’s solar PV market, which stagnated at or below 1 GW annually. Failed auctions, delayed project construction starts and missed deadlines were often symptoms of unrealistically low prices, expensive capital and larger problems within India’s power sector.
There is renewed optimism in 2015, and one of the signs of growth is the signing of large supply contracts. On Monday, China’s Zhongli Talesun announced a deal to supply 222 MW of solar PV modules to developer ACME Cleantech, with deliveries planned through February 2016.
ACME entered into a joint venture with France’s EDF to develop and construct solar power projects in India in late 2013. ACME claims to have already completed 1.5 GW of capacity and plans to complete another 7.5 GW of projects by the end of 2019.
ACME notes that this is its first year of cooperation with Zhongli Talesun, and already says that it is looking forward to a 500 MW follow-up order in 2016.
Ambitious announcements that are not followed up by timely, concrete progress has been a recurring theme in India’s solar market. However, this year realizing big plans does not seem so far off.
Mercom Capital, which monitors the Indian market, recently increased its 2015 India forecast to 2.5 GW. The company predicts that the nation’s market will grow again in 2016, and will be among the top five global markets in to 2020.