Researchers of Centre for Science and Environment (CSE) have claimed that the United States
is using the 'fast start financing fund' to its pervert advantage for
ruining the Indian domestic solar photo-voltaic (PV) manufacturing
industry.
Currently, 80 per cent of the Indian manufacturing capacity is in a state of forced closure and debt restructuring with no orders coming to them, while the US manufacturers are getting orders from Indian solar power developers,'' says CSE.
As the nation's ambitious solar mission's first phase draws to a close next year, CSE is analysing the state of renewable energy resources and infrastructure in India and the country's preparedness to meet the mission goals.
Chandra Bhushan CSE's deputy director general said "Fast start financing is a US $30 billion fund set up under the United Nations Framework Convention on Climate Change. The fund adopted at the Copenhagen climate meeting in 2009, is supposed to help developing countries deal with climate change impacts and limit greenhouse gas emissions."
He said, "The US has been very ingeniously using this fund to promote its own solar manufacturing. The US Exim Bank and the Overseas Private Investment Corporation (OPIC) have been offering low-interest loans to Indian solar project developers on the mandatory condition that they buy the equipment, solar panels and cells from US companies. This has distorted the market completely in favour of US companies."
The Government of India has been aggressively promoting solar power projects since 2010 as part the National Action Plan on Climate Change. The Jawaharlal Nehru National Solar Mission (JNNSM), plans to install 22,000 MW of solar energy by 2022 by using a mix of feed-in-tariffs and Renewable Purchase Obligations (RPOs). Within three years, 2009-12, India has gone from almost zero to close to 1,000 MW of solar installations in the country. Though the JNNSM mandates a domestic content requirement meaning all projects must buy domestically manufactured solar equipment it does it only for the crystalline PV technology and not for the thin-film PV technology,'' says CSE.
CSE researchers said that taking advantage of this loophole, the US Exim Bank and OPIC have been offering very low rates of interest (about 3 %) and a long repayment schedule (up to 18 years) to Indian solar project developers on the condition that they buy thin-film panels manufactured by US companies. Loans from Indian banks come with an interest rate of close to 14 % or more. This has skewed the market completely in favour of thin-film panels imported from US despite the fact that thin-film has lower efficiency when compared to crystalline panels. Close to 60 % of the panels installed in India are thin-film type even though only 14 % of global capacity is thin-film, they said.
Currently, 80 per cent of the Indian manufacturing capacity is in a state of forced closure and debt restructuring with no orders coming to them, while the US manufacturers are getting orders from Indian solar power developers,'' says CSE.
As the nation's ambitious solar mission's first phase draws to a close next year, CSE is analysing the state of renewable energy resources and infrastructure in India and the country's preparedness to meet the mission goals.
Chandra Bhushan CSE's deputy director general said "Fast start financing is a US $30 billion fund set up under the United Nations Framework Convention on Climate Change. The fund adopted at the Copenhagen climate meeting in 2009, is supposed to help developing countries deal with climate change impacts and limit greenhouse gas emissions."
He said, "The US has been very ingeniously using this fund to promote its own solar manufacturing. The US Exim Bank and the Overseas Private Investment Corporation (OPIC) have been offering low-interest loans to Indian solar project developers on the mandatory condition that they buy the equipment, solar panels and cells from US companies. This has distorted the market completely in favour of US companies."
The Government of India has been aggressively promoting solar power projects since 2010 as part the National Action Plan on Climate Change. The Jawaharlal Nehru National Solar Mission (JNNSM), plans to install 22,000 MW of solar energy by 2022 by using a mix of feed-in-tariffs and Renewable Purchase Obligations (RPOs). Within three years, 2009-12, India has gone from almost zero to close to 1,000 MW of solar installations in the country. Though the JNNSM mandates a domestic content requirement meaning all projects must buy domestically manufactured solar equipment it does it only for the crystalline PV technology and not for the thin-film PV technology,'' says CSE.
CSE researchers said that taking advantage of this loophole, the US Exim Bank and OPIC have been offering very low rates of interest (about 3 %) and a long repayment schedule (up to 18 years) to Indian solar project developers on the condition that they buy thin-film panels manufactured by US companies. Loans from Indian banks come with an interest rate of close to 14 % or more. This has skewed the market completely in favour of thin-film panels imported from US despite the fact that thin-film has lower efficiency when compared to crystalline panels. Close to 60 % of the panels installed in India are thin-film type even though only 14 % of global capacity is thin-film, they said.
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