India to close solar import loophole in energy auction

India plans to close a loophole before its next solar-power auction to stop companies from importing thin-film panels from overseas suppliers like First Solar for projects that otherwise must be built with local equipment.

The government will invite developers by the end of May to bid for 750 megawatts of solar capacity, Tarun Kapoor, joint- secretary at the Ministry of New and Renewable Energy, said in a telephone interview. About 300 megawatts of that will be required to use locally made solar cells and panels, and may not import thin-film photovoltaic devices, he said.

Developers previously were able to skirt local sourcing rules on a portion of auctioned projects by opting for thin-film technology. Those devices, which tend to be cheaper, were exempt from the import restrictions on crystalline silicon panels made by companies such as China’s Suntech Power Holdings. Traditional crystalline panels are silicon-based, while thin- film technology coats panels with materials such as cadmium telluride.

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