Scatec of Norway and ACME of India have chosen to postpone a $400 million solar power project in India due to supply chain constraints and rising import tariffs, the Norwegian business announced on Thursday.
In May 2018, Scatec had commissioned this 900MW solar project. In June 2021, Scatec got an opportunity to collaborate with ACME to develop this solar power project in Rajasthan, India.
Last year (2021), Scatec joined the Indian market by teaming up with ACME to develop a plant in Rajasthan under a 25-year power purchase deal with Solar Energy Corporation of India (SECI) after a tender in 2018.
The facility was scheduled to open in 2022, but construction has not yet commenced.
Scatec and ACME’s solar project required a total CAPEX of $400 million, with an Indian state-owned institution providing 75% debt financing. Scatec owned a 50% economic stake in the company, while ACME owned the other half.
Scatec announced in April that it was looking to engage with project developers in India to establish its presence in Indian Market. It announced a NOK 100 billion (US$11.7 billion) investment plan in March to increase its renewables portfolio to 15 GW over the following four years, with India mentioned as one of the primary destinations for expansion.
“Scatec and ACME have decided to put the 900 MW project in India on hold due to lack of supply of domestic solar panels and a 40% import duty on solar panels to be imposed from April 1,” Scatec said in its quarterly earnings report.
India, which was formerly one of the world’s fastest expanding renewable sectors, has chosen to impose customs taxes on solar modules and solar cells to reduce its reliance on Chinese imports and stimulate domestic production.
India stated on Tuesday that it will invest $2.62 billion in solar equipment production to achieve its goal of deploying 280 gigawatts of solar capacity by 2030.
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Resource: LiveMint
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