India installed more than 10 GW of PV projects in the first quarter of 2024, which is by far the highest number of installations in a single quarter.
According to the recently released India Solar Market Update for Q1 2024 by Mercom India Research, solar power generation has increased by nearly 400% as compared to the installed capacity of more than 2 GW in Q1 2023. Solar power generation increased by 414% compared to the nearly 2 GW added in the fourth quarter of 2023. Large-scale solar accounted for 9.7 GW, with open-access solar projects accounting for 1.8 GW. Solar capacity additions from large-scale projects increased 524% quarter-over-quarter and 534% year-over-year.
The first quarter of 2024 saw a surge in solar project installations due to a number of factors, including commissioning of projects that were delayed in previous quarters, developers taking advantage of falling module prices, ALMM list suspensions and grid connection approvals for solar projects, among others.
Raj Prabhu, CEO of Mercom Capital Group, commented, “A large number of large-scale projects are planned for 2024, which will make it largely a record-breaking year for India. Assuming policy and supply chain stability, India will be among the top three solar markets globally if government agencies continue to auction projects and meet set targets.”
As of March 2024, the cumulative installed solar capacity in India is 82 GW. Solar accounts for 18.5% of India's total installed capacity and 43% of total installed renewable energy capacity.
The pipeline of large-scale solar projects in India has a capacity of 143 GW and another 93 GW has been tendered and will be auctioned by the end of the first quarter of 2024. The average cost of large solar projects declined by 7% sequentially and 28% year-on-year, significantly improving the internal rate of return of these projects.
Total bids announced for the quarter were 30.7 GW, up 122% year-on-year and 92% quarter-on-quarter. In the first quarter of 2024, 25 GW of solar projects were auctioned, up 229% sequentially and 2,957% year-over-year.
Source: https://mp.weixin.qq.com/s/KB8fPj-5wxjAWpmAgYG5Qg