Thanks for all your great feedback and points to the article.
Abhishek to your point, making the modules cheaper is the goal of the industry and the path to grid parity. India exports 70% of its modules to Spain and Germany, two countries with some of the best incentives out there. Spain and Germany (or other countries) can raise the same issues which would not be ideal for Indian manufacturers.
India's biggest challenge in the power industry has been the inability to attract foreign investment into the sector. When developing successful policy the initial focus should be on creating demand, if that happens supply will follow. India should decide what its initial focus is - building a solar manufacturing sector or creating a policy atmosphere conducive to attracting billions of dollars of investment needed to develop projects and address power shortage (which would in turn create domestic demand). Most investors are not ready to risk spending millions of dollars of their money if they cannot have control over what modules they buy.
Venky53, agree with you wholeheartedly.
We are saying the same thing, let the markets decide which is the best and most cost effective technology for India and develop projects accordingly. But by splitting the allocation 50:50 between PV and CSP the government is mandating and restricting which technology should be developed and by how much.
Ashok, thanks for your comments.
India and Spain are very different markets. The two biggest criticisms I hear about Spain is the boom & bust cycles and funding uncertainty. India can handle the boom due to huge power shortages but the Solar India program has to be properly funded giving investors and companies a reason to take a long term view on India and invest heavily.
Good starting point for a debate is how to get the Solar India program fully funded?
Sam,Thanks for the question.
Since writing this analysis the India Government policy on solar has changed from feed-in-tariff to reverse auction. This changes everything, I will be updating the analysis on JNNSM in the coming weeks based on changes on the ground.