The recent motion of imposing import duties on solar generation equipment will set an inverse motion of undesirable events affecting India’s energy security.

~80% Indian module manufacturers who import solar cells, will face possible shutdown

Only 10% who import silicon wafers will benefit. They don’t possess the scale to meet the demands of the market

This will cause possible derailment of solar power mission post anti-dumping duty

10%

MNRE & MoEF are opposing the motion for promoting low cost clean energy and achieving India’s energy security

Of 375 MW allotted DCR capacity, Indian manufacturers can meet orders for less than 200 MW capacities

High import cost will increase solar generation cost and reduce profitability. This cost will be ‘passed on’ to distribution companies, the government or the public as higher cost of power or subsidy.

Solar Power Developers Associations

Rural electrification program through distributed generation will be suspended.

Approximately 700 MW solar projects (JNNSM & State Governments) will have to be abandoned. Already ~1000 MW are stranded.

Severe impact on India’s GDP - in solar value chain, ~70% of jobs are in EPC and O&M. Project abandonment will prevent these from being created.

Additional jobs in balance of system (BOS) value chain i.e. inverters, cables, steel etc. will suffer due to industry stagnation.

Dependence on thermal generation will rise again, thereby damaging the climate. Pressure will mount on increasingly scarce resources like water and land, impacting livelihood of millions.

Anti dumping duty at this juncture will impact India’s international trade relationships with countries like China, USA, Malaysia & Taiwan, our targeted countries for export. Our efforts to use manufacturing sector and export for immediate economic growth will be setback.

It will be against the vision of the Honorable Prime Minister of India who wants to focus on renewable energy as a growth driver and climate change mitigator.

Encourage foreign companies exporting to India to invest in the country through FDI route in possible combination with SEZ and other economic policies to establish India as an export hub for modules and other component.

Recognize that the technology in solar modules get updated continuously (almost every 6 months) resulting in higher capacity module that helps reduce land usage, installation time and increase reliability. Set up centers of excellence for undertaking R&D in PPP mode to drive the growth through innovation. They can focus on cutting edge inventions that should include the complete value chain of solar module (silicon, wafer, cell, module, EVA, junction box, solar glass) and other components.

Drive efficient indigenous production to match international price and thus contribute to exports

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Put in abeyance the decision for imposition of anti-dumping duty.

Undertake a study to identify economic contribution (energy access, energy security, job creation, cost of electricity as an economic input for other industries etc) of all components of solar industry on a life cycle basis (25 years). Include the comparative impact on CAD through marginal impact due to import of modules (wafers and cells are already being imported) and import of petroleum products (for diesel and kerosene).

Presently stable solar tariffs will rise back to Rs. 12-13 per unit, thereby impeding widespread electricity access.

Responsible Development of Solar Industry

If Put into Effect:

Holistic growth measures:

Rs. 7

Rs.13

SUSPENDED

SUSPENDED

Leading newspapers have joined us in opposing this move

Hindu Business Line: Solar developers believe anti-dumping duty decision was hastySolar power producers say that something is not right in the unseemly haste in the Ministry’s move.

Mint: India may back solar duties after probe says US, China dumpedIf Asia’s third-biggest solar market imposes duties, it would escalate a protectionist trend that’s threatening the viability of projects as they compete against conventional power sources.

Bloomberg Business Week: First Solar Joins Developers Saying Dumping Probe FlawedTheir petitions claim that the Ministry of Commerce & Industry failed to consider evidence showing that domestic producers don’t possess sufficient local domestic production capacity to legally warrant a probe, according to the group.

Wall Street Journal: Indian Ministry Recommends Solar Cell Anti-Dumping DutiesThe decision came despite opposition by those who argue that because India doesn’t have sufficient domestic manufacturing capacity to meet targets for increased use of solar power, imposing duties that would likely reduce imports doesn’t make sense. The Ministry of New and Renewable Energy plans to ask prime minister-designate Narendra Modi to halt the proposed duties.

PV Tech: Welspun: Anti-dumping duties are against Modi’s solar visionAnti-dumping duties “will be against the vision and spirit of the incumbent honorable prime minister of India who wants to focus on renewable energy as a growth driver and for climate change mitigation, consequently positioning India as a progressive nation globally,” Welspun told PV Tech in a statement.

The Ministry of New & Renewable Energy (MNRE) has also opposed imposition of anti-dumping duty stating that the duties will drive up the cost of solar project and jeopardize the development of the sector.

The Economics Times: Dumping duty on imported cells to double solar power costsThis will create havoc as costs will double and developers will be forced to charge Rs 10-11 per unit, which discoms will be unable to afford. Even now, they find it difficult to honour renewable purchase obligation with a tariff of Rs 7-7.5.We have taken legal recourse. - Solar Power Development Association.

The Times of India: Renewable energy ministry opposes anti-dumping duties on imported solar modulesThe ministry of new and renewable energy (MNRE) and several state governments are siding with solar power project developers to say that the ministry of commerce should not impose an anti-dumping duty on international panels.

Business Standard: MNRE opposes levy on imported solar cells; says not right timeThe Ministry of New and Renewable Energy is opposing the Commerce Ministry's recommendation to slap an anti-dumping duty on imported solar cells. "We are opposing it (anti-dumping duty). From our side, we have said that it is not the right time...Because there are a lot of projects in the pipeline," Tarun Kapoor, Joint Secretary at the MNRE, said.

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