Chinese solar module makers have raised prices by over a fifth since December, two executives at Indian solar power developers said. This may impact a capacity of around 10 gigawatts (GW) under development. The Chinese companies are also reneging on contracts to supply the equipment on the price as agreed, even at the risk of their bank guarantees getting encashed, these developers said.
Prices for contracts signed at 19 cents per kilowatt-hour (kWh) have been raised, with a price of 23 cents per kWh been quoted since December, one of the two people cited above said. Any price hike will impact the internal rate of return (IRR) from projects which have already signed power purchase agreements (PPAs).
With India having strict project commissioning deadlines, a failure to meet them will result in penalties for developers. India imported $2.16 billion worth of solar photovoltaic (PV) cells, panels, and modules in 2018-19. Major Chinese solar module manufacturers include Trina Solar Ltd, Jinko Solar, ET Solar, Chint Solar and GCL-Poly Energy Holdings Ltd.
