EQ June/July'14 Edition by EQ Int'l Solar Media Group

Volume # 4 | Issue # 6 | June-July 2014 |

Pages#84 | Rs.5/-

Suresh Sugavanam Managing Director UL India

Cover Story : UL accelerating testing and certification services for renewable energy in India Solar Diesel Hybrid Project Gets Connected in Coimbatore Karnataka Solar Policy 2014-21 and 500 MW Solar Tender Brief

I N T E R N AT I O N A L

The Big Debate on Proposed Anti Dumping Duty on Imports of Solar Cells/Modules in India

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Mumbai's New Gateway of India L&T transforms GVK’s glorious vision into glittering reality - Terminal 2 of Chhatrapati Shivaji International Airport Mumbai. The nation's adrenaline-charged nerve centre. A metropolis aglow with a million dreams and teeming with unstoppable energy. For decades, this city has been India's gateway to the world, and the future. Today, Mumbai presents a new gateway - Terminal 2 at the Chhatrapati Shivaji International Airport. L&T is proud to have played a leading role in building a masterpiece of urban infrastructure where engineering melds with aesthetics and science partners art.

L&T drew on its experience and advanced engineering skills including Building Information Modeling and project management expertise to build this iconic complex without affecting operations – making it one of the most challenging brownfield airport projects in the world. This international airport is another highlight in L&T's continuing contribution to the country's growth story, and reaffirms its leadership position in providing total infrastructure for a new India.

Clarity/RDP/05/2014

India's busiest airport has now doubled passenger capacity. Expanded and enhanced facilities now rank among the world's

finest. And a unique 3 km art gallery and exquisite interiors add lyricism to the air travel experience.

40 million passengers annually

10,800 bags/hr, 5 level in-line screening baggage system

4.4 million sq. feet built-up area

AODB, IB, FIDS, BIDS, CUPPS, CUSS, PA, AFAS, BRS, HBS, SSCP, VDGS, BMS,SCADA, DAS, TMR & other IT Systems

188 check-in counters, 58 self-check-in kiosks,12 CIP / VIP counters 160 escalators, moving walks and elevators 25 fixed link bridges, 52 movable aero bridges Multi-level car park for 5000 cars - India's largest

3D detailing and BIM by site based teams of over 250 engineers and architects Global procurement of GFRG, GFRC, glasses, chandeliers, signage, counters…

6-lane elevated corridor from Western Express Highway

Project Management - Teams of over 15,000 workmen, 1,000 engineers and 200+ sub-contractors

11,000 sqm glass wall structure - the world’s longest

Design and construction of 83-metre ATC tower

13,800 TR Chiller & 18 MVA power back up 2200 cameras, 700 ACS units, 1000 digital displays

Regd. Office: L&T House, N. M. Marg, Ballard Estate, Mumbai – 400 001, INDIA Tel.: +91 22 6752 5792 / 841 CIN: L99999MH1946PLC004768

A brand of Larsen & Toubro Limited

EDITORIAL

ndia is on its way to turn the 57GW by 2022 dream into reality. Appointment of the Modi government has brought optimism to the growth of the solar Industry in India. Modi led Gujarat has been the leader and Shri Piyush Goyal has vowed to replicate the Gujarat model to the whole of India. Companies and investors are willing to bet big. Zealous comments are being heard from the new government like - electricity for all through renewables (mainly solar); strengthening of the RPO Mechanism; substantial expansion of the JNNSM; accelerated depreciation to households going for solar. The recently rolled out Union Budget 2014-15 emphasised the high priority of Renewable energy. Measures such as increasing clean energy cess from Rs. 50 per tonne to Rs. 100 per tonne have been taken. Large sum of funds have been earmarked for development of solar power like - Rs. 500Cr for ultra mega solar projects in states like Rajasthan, Gujarat, Tamil Nadu, AP, Ladakh; 400Cr. for launching scheme for solar power driven agricultural pump sets and water pumping stations to energise one lakh pumps; and to promote 1MW solar parks on banks of canal, Rs. 100Cr has been set aside. Implementation of the green energy corridor project will also be accelerated in this financial year to facilitate evacuation of renewable energy across the country. 10 year income tax holiday is extended to undertakings which begin generation, distribution & transmission of power by 31.03.2017. Assuaging sentiments of domestic manufacturers excise duty and basic customs duty has been exempted on inputs used for manufacturing like the EVA sheets, solar back sheets, flat copper wire used in PV ribbons. Further, on solar tempered glasses excise duty has been exempted. With an intent to incentivize domestic manufacture rather than imports of solar PV cells & modules, excise duty has been exempted & basic custom duty concessionalised to 5% for machine & equipment required for setting up of a project for solar energy production. Progression to achieve the long awaited vision can be seen evidenced by the horizon of the 1500MW tender under the 2nd round of phase 2 of JNNSM, 500MW tender announcement by the Karnataka government, 1000MW solar park by MoU between Industrial Infrastructure Corporationâ&#x20AC;&#x2122;s Telangana unit & SECI, ambition to tap the solar energy at AAI airports and the various upcoming projects by NTPC. We are on our way to install the worldâ&#x20AC;&#x2122;s largest solar power plant of 4000MW in Rajasthan. Though, these opportunities come with its share of challenges like the proposed anti-dumping duty and hence their impact on newly tendered projects (Open Category) under the JNNSM Phase 2 Batch 1 affecting their viability; regulatory challenges like lack of RPO enforcement; growth of domestic manufacturers; Delhi Power Crisis and policy related issues. Join us at EQ Leadership Summit to network and interact with top leaders of the industry, policy makers, technical experts, key stakeholders, finance experts to listen to their learnings from JNNSM phase 1, how they plan to address the posed challenges, cashing the upcoming opportunities and gain the right finance for your project and hence, vow with the industry to MAKE IT BIG !

Anand Gupta Editor & CEO

EMAMI BIODIESEL: PERFECT FOR YOUR POCKET. PERFECT FOR THE PLANET. The rising costs of traditional fuels like petro-diesel have created an urgent requirement for an affordable, eco-friendly alternative. Emami Biotech Ltd. has fulfilled this need with the ideal replacement – Biodiesel. It extends machine life, reduces maintenance and is easier to handle and store. Emami’s biodiesel is backed by superior technology and production capabilities. Highlights of Emami’s biodiesel • Produced at state-of-the art multi-feed stock facility commissioned by Desmet Ballestra, a Belgian technology company. • The plant is capable of manufacturing biodiesel conforming to EU (EN14214) and BIS standards. • Low sulphur content; out-performs industry standards*. • Betters industry benchmarks in ash & moisture content, total contaminations and carbon residue indicators. • Regular exporter to many European countries. • ISCC Certification - It is the pre-requisite for export of biodiesel to Europe. ISCC is one of the leading certification systems for sustainability & greenhouse emmissions. USES OF BIODIESEL Vehicles: Can be used in every diesel engine powered vehicle. (Millions of miles were logged on biodiesel in EU nations). Farming and Industrial Equipments: Can be used for construction, mining, and farm machinery. Marine Vessels: Can be used in marine engines safely. Marine use is especially attractive due to the elimination of any possibility for contamination of waterways. Stationary Power Generation: With new power generation capacity coming online, biodiesel makes an attractive choice to meet the regulations. Many stationary applications require exhaust emission control system, which will work well with biodiesel. Boiler Fuel: Can be substituted easily for gas or fuel fired boilers. Hybrid Vehicles: With many states now mandating hybrid electric vehicles (including the fuel cell hybrid), biodiesel will make excellent reforming fuel. Agriculture Adjuvants: Biodiesel is used as a carrier for pesticides and fertilisers in agriculture sprays due to it being nontoxic and biodegradable. Solvents: Can be used as industrial solvents and as a replacement of high VOC containing petroleum solvents. With regulations driving the VOC contents lower for solvents used in industries, biodiesel offers an attractive solution. Lubricity Agent/Additive: Our biodiesel can also be used as a lubricity agent/enhancer in many applications. It is especially useful in marine applications where water contamination with petroleum lubricity agents can create problems. With the low-sulphur fuel regulation of the future, biodiesel can be used as a lubricity additive. 1-2% biodiesel added to diesel fuel can increase diesel lubricity by 65%. Textile Coning Oil: It is a suitable replacement of coning oil. Bio Jute Oil: It is used for processing of raw jute fibre. It is completely free from aromatic hydrocarbons. Metal Working Fluids: Used for metal-cutting oil to reduce environmental pollution and also used as coolant. Paint Industry: It can be used as drying oil for the paint industry. Fuel Oil: It can be used in gen set with the blend of diesel oil. It can also be used in boiler and road making equipment.

FEATURES

ADVANTAGES OF BIODIESEL

Environment Friendly

It is an environment-friendly fuel, the best alternative to common petroleum diesel. Biodiesel is 11% Oxygen by weight and contains no Sulphur. It produces approximately 80% lesser CO2 (Carbon Dioxide) and almost 100% lesser SO2 (Sulphur Dioxide) emission.

Credibility

It is a proven fuel with over 30 million successful US road miles and over 20 years of usage in Europe.

No Modification of Engine Required

Biodiesel is the only alternative fuel that runs in any conventional, unmodified diesel engine.

How to Use

It can be used alone or mixed in any ratio with petroleum diesel fuel. The most common blend of mixing is 20% biodiesel with 80% petroleum diesel, commonly known as B20 for transport vehicle. However, for a Static Engine, 100% biodiesel commonly known as B100 can be used.

Same Power Output

Biodiesel offers the same power output as petro-diesel fuel.

Extended Life of Engine

The use of biodiesel can extend the life of diesel engines because lubricates better than petroleum diesel fuel, while fuel consumption, auto ignition, power output, and engine torque remain unaffected. Biodiesel also has a cleansing effect on engine walls.

Safe to Handle & Store

Biodiesel is safe to handle and transport because it is as biodegradable as sugar, 10 times less toxic than table salt, and has a high flashpoint of about 1250C as compared to petroleum diesel fuel, which has a flash point of 550C.

Cost Advantage

Price of biodiesel is the same as that of petroleum diesel, but due to its properties, it increases the life of the engine and reduces the maintenance cost over the period of time.

COMPARISON OF CALORIFIC VALUE OF HIGH SPEED DIESEL AND BIODIESEL PRODUCT

UNIT

GROSS

CV % OF PURITY

NET CV

SPECIFIC GRAVITY

EFFECTIVE CV

(1)

(2)

(3)

(4)

(5) = (3)X(4)

(6)

(7) = (5)x(6)

HSD

Kcal/Kg

10700

95%

10165

0.820

8335

Bio-Diesel

Kcal/Kg

9600

99.5%

9552

0.875

8358

• To know more about reduction in biodiesel emissions compared to conventional diesel, according to EPA, visit www.emamibiotech.com • Comparison of specification of petro-diesel, biodiesel & Emami biodiesel, visit www.emamibiotech.com Thus, as the best choice for your budget & the planet, Emami’s biodiesel is perfect for your requirements. For more information, visit: www.emamibiotech.com Anand Gupta anand.gupta@emamigroup.com

BIO DIESEL

+91 98262 44496

*http://www.commodityonline.com/news/emamis-biodiesel-rated-best-by-sgs-singapore-14712-3-14713.html

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FirstSource Energy INDIA PRIVATE LIMITED

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Editor & CEO:

THE DEBATE ON ANTI DUMPING DUTY

CONTENTS SOLAR ENERGY

VOLUME 4 Issue # 6

Srini Viswanathan 12

ANAND GUPTA anand.gupta@EQmag.net

First Solar Diesel Hybrid Project Gets Connected in Coimbatore

Vineet Mittal 16

Vice Chairman Welspun Renewables Energy Pvt. Ltd.

PUBLISHER:

ANAND GUPTA

TRENDS & ANALYSIS

SAUMYA BANSAL GUPTA saumya.gupta@EQmag.net ARPITA GUPTA arpita.gupta@EQmag.net

PUBLISHING COMPANY DIRECTORS: ANIL GUPTA

ANITA GUPTA

Consulting Editor: SURENDRA BAJPAI

INTERVIEW

PRINTER:

THE DEBATE ON ANTI DUMPING DUTY

ANAND GUPTA

Sunil Jain 28

Editorial Contributions:

CEO & ED Hero Future Energies Pvt Ltd

Ankit Kanchal, Vineet Mittal, Sunil Jain,Ketan Mehta, Narender Surana, Michael LIU, Rajesh Singh, Rodney Roland, Deepak Gupta, Anurag Garg, Ajay Goel, Suresh Sugavanam

Ketan Mehta 29

Director RAYS Power Infra Private Limited

Cover Sales & Marketing:

GOURAV GARG gourav.garg@EQmag.net

Subscriptions:

PIYUSH MISHRA piyush.mishra@EQmag.net

Layout and Design: MD SUHAIL KHAN

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PRINT PACK PVT. LTD. 60/61, Babu Lalbhchnad Chajlani Marg, Distt-Indore, (Madhya Pradesh) Disclaimer,Limitations of Liability While every efforts has been made to ensure the high quality and accuracy of EQ international and all our authors research articles with the greatest of care and attention ,we make no warranty concerning its content,and the magazine is provided on an>> as is <<basis.EQ international contains advertising and third â&#x20AC;&#x201C;party contents.EQ International is not liable for any third- party content or error,omission or inaccuracy in any advertising material ,nor is it responsible for the availability of external web sites or their contents The data and information presented in this magazine is provided for informational purpose only.neither EQ INTERNATINAL ,Its affiliates,Information providers nor content providers shall have any liability for investment decisions based up on or the results obtained from the information provided. Nothing contained in this magazine should be construed as a recommendation to buy or sale any securities. The facts and opinions stated in this magazine do not constitute an offer on the part of EQ International for the sale or purchase of any securities, nor any such offer intended or implied Restriction on use The material in this magazine is protected by international copyright and trademark laws. You may not modify,copy,reproduce,republish,post,transmit,or distribute any part of the magazine in any way.you may only use material for your personall,Non-Commercial use, provided you keep intact all copyright and other proprietary notices.If you want to use material for any non-personel,non commercial purpose,you need written permission from EQ International.

UL is a premier global independent safety science company that has championed progress for 120 years. Its more than 10,000 professionals are guided by the UL mission to promote safe working and living environments for all people. UL uses research and standards to continually advance and meet everevolving safety needs. We partner with businesses, manufacturers, trade associations and international regulatory authorities to bring solutions to a more complex global supply chain.

Suresh Sugavanam Managing Director UL India

Ajay Goel 20

Michael LIU

MNRE

General Manager – Operations , RenewSys India

Rodney Roland 38

Global Business Development Manager Alternative Energy ITW Solar

EQ BUSINESS & FINANCIAL NEWS 8-11

THE DEBATE ON ANTI DUMPING DUTY

Anurag Garg 42

Director Enrich Energy Pvt. Ltd.

Deepak Gupta 40

Ankit Kanchal 26

Rajesh Singh 32

INTERVIEW

Vice President of Marketing and Sales CSUN - China Sunergy Co., Ltd.

THE DEBATE ON ANTI DUMPING DUTY

Chief Executive Ofﬁcer Tata Power Solar Systems Limited

INTERVIEW

THE DEBATE ON ANTI DUMPING DUTY

Managing Director Surana Ventures Limited

INTERVIEW

Narender Surana 18

INTERVIEW

THE DEBATE ON ANTI DUMPING DUTY

CONTENTS

Vice President Solar Business, Schneider Electric India

Imposition Of Anti-Dumping Duties On Import Of Solar Cells And Modules – Impact Analysis Now is the time to support solar PV manufacturing in India – Not later….. Government Of India Ministry Of Commerce & Industry Department Of Commerce ...

POLICY & REGULATION 74 76

Karnataka Solar Policy 20142021 Karnataka 500 MW Solar Tender Brief

PRODUCT REP 78-79

& EQBusiness Financial Tata Power successfully commissions its 2nd 25 MW solar farm in Palaswadi, Maharashtra Tata Power, India’s largest private power company, which has developed a 25 MW (28.8 MWp) solar photovolt aic (PV) power project, through its subsidiary, Tata Power Renewable Energy Limited (TPREL), today announced the formal successful commissioning of its project on 31st May 2014. The project was ready during last week of March but could not be connected to state grid due to non availability of shutdown in existing lines and substations. >The solar plant, spread over 130 Acres, is located at Palaswadi village in Maan taluka in Satara district in Maharashtra. The solar plant uses Crystalline Silicon PhotoVoltaic Technology. The solar plant is expected to generate approximately 46 MU per year

which will enable Tata Power meet its Solar Renewable Purchase Obligations (RPO). This plant is one of the largest of its kind by a private power utility in the State and the power is evacuated through the State transmission network. The Maan taluka is a waterscarce drought-prone region in Maharashtra. The Company has already initiated the construction of check dams which will harness the rain water and make it available for irrigation and other uses that will benefit the local community. Speaking on the commissioning, Mr. Anil Sardana, Managing Director, Tata Power, said, “We are delighted to announce the commissioning of yet another large solar project of 25 MW. We would like to thank the

Government of Maharashtra, Maharashtra State Electricity Tr a n s m i s s i o n C o m p a n y Limited, Maharashtra State Electricity Distribution Company Limited, the local community and authorities and all our stakeholders for the support extended in setting up this solar power project at Palaswadi.” The project with an overall cost of approximately Rs. 250 crores is being funded through debt & equity components. TPREL had successfully tied up the entire debt requirement through IDFC Limited in February this year. The signing of financing agreements was completed on 24th February 2014. TPREL complied with the pre disbursement conditions under the financing agreements and received the first loan

disbursement on 28th February, 2014.The Company’s strategy emphasizes the development of clean energy generation from renewable sources to balance the carbon emissions from fossil fuel based generation capacity while contributing towards energy security of the country The Company has also operating solar capacities of 3 MWp at Mulshi in Maharashtra and 25 MWp at Mitahpur in Gujarat, alongwith its first solar power plant of 110 kW, set up way back in 1996 at Walwhan in Lonavla. With these projects, Tata Power now has a strong portfolio of 56+ MW of Solar and 461 MW of Wind making it the largest Renewable Utility player in India.

ACME Solar wins bid for 30 MW projects ACME Solar, the leading solar power player in India, a JV between ACME CSL, EDF EN and EREN, recently announced that it has emerged as the developer for 30 MW solar PV power projects at the bidopening event at Raipur under RFP fl oated by Chhattisgarh State Power Distribution Company Limited (CSPDCL) on April 01, 2014.As per the terms and conditions of the bidding document, the selected developer would sign 25 year long PPA with the CSPDCL on

the uniform tariff submitted in the bid. Commenting on this momentous occasion, Mr. Manoj Kumar Upadhyay, CEO, ACME Solar said, “This contract was won in a fierce tariff-based competition among 16 developers of international fame. It is a testimony to the prowess of ACME Solar and further strengthens our emergence as the leading solar power producer in the country. With this addition, our solar power portfolio has reached 180 MW

and we are on way to generate 1000 MW by year 2017. We thank the Chhattisgarh State Authorities and look forward for support from all stakeholders to help us in achieving the dream of making Chhattisgarh a model state for energy-efficiency.” This project would entail an estimated investment of $ 40 mm/ Rs. 240 crores. As per Chhattisgarh State Regulatory Commission order dated September 18, 2013 the distribution licensee shall prepare a plan for procurement of power

from RE source under its long term power procurement plan so as to comply with minimum RPO target of 6.75% (of total consumption) by FY 2014-15. ACME Solar is a three-way joint venture between ACME Cleantech Solutions Limited, EDF Energies Nouvelles (EDF EN), the renewable energy arm of French state-run electricity utility Électricité de France S.A., and Luxembourg-based natural resources saving group EREN.

Tata Power Solar Completes 50-Megawatt Plant for NTPC Tata Power Solar Systems Ltd., a unit of India’s biggest industrial group, has completed a 50-megawatt photovoltaic plant to almost double solar capacity for NTPC Ltd. (NTPC) 8

EQ June-July 2014

Electricity generated at the plant in Rajgarh in the Indian state of Madhya Pradesh will power around 90,000 homes, Tata Power Solar said in an e-mailed statement today.

The project will increase NTPC’s solar capacity to 95 megawatts, according to the statement. The state-controlled utility, which owns 43,000 megawatts of capacity making it India’s

largest power generator, plans to develop 1,000 megawatts of renewables by 2017, the statement shows.

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& EQBusiness Financial Madhya Pradesh Signs 75 MW Solar PPA’s on World Environment Day On the occasion of World Environment Day, realizing the dream of Solar Energy the Madhya Pradesh Power Management Co. Ltd (MPPMCL) signed PPA’s with 3 private companies for purchase of Solar Power in the presence of MPPMCL’s CEO Shri Manu Shrivastav. First PPA was signed with Renew Solar Energy, New Delhi for 50 MW Solar Plant, second PPA with Bhadresh Trading Corporation Ltd, Mumbai for

10 MW Solar Plant and third with KRBL for 15 MW Solar Plant. All the PPA’s was signed by Shri R.D.Saxena, M.D. of MPPMCL with Mr.Shashank Adhalkha, Renew Solar Energy and Mr.Riken Bora, Bhadresh Trading Pvt Ltd and MR.Avdesh Kumar Sharma, KRBL. MPPMCL had floated a tender to invite companies to set up solar plant in the state of madhya pradesh under the competitive bidding route and thus received 24 offers wherein

6 companies were issued LOI’s for 120 MW Solar Projects. The winning bidders quoted between Rs.6.47 per unit to Rs.6.97 per unit.Renew Solar Energy will commission a 50 MW Solar Energy Plant at Vijaypur, Dist. Sheopur and the commissioning time is 25 months. The Solar Power will start flowing from July’2016. The company has signed PPA to supply the solar power at Rs.6.97 per unit

Solar Plant at Khilchupur, Dist. Rajgarh which has signed 25 year PPA to supply solar power at Rs.6.9 per unit and will be operational from Dec’2015. KRBL will set up 15 MW Solar Plant at Barod, Dist.Agar which has signed a 25 year PPA to supply solar power at Rs.6.949 per unit and the plant will be operational within 18 months by Dec’2015.

Bhadresh will set up 10 MW

Indosolar inks single largest solar cell supply contract of 60 MW with Azure Power the definitive agreement with Mr. Inderpreet Wadhwa, CEO, Azure Power India Pvt. Ltd at a small and closely held ceremony. Supplies will commence shortly and will be completed early Q1, 2015, keeping in mind the timeline of the National Solar Mission.

Indosolar Limited inks the single largest solar cell supply contract of 60 MW under Domestic Content Requirement (DCR) of National Solar Mission signed

today with Azure Power India Pvt. Ltd, at New Delhi. Mr. B. K. Gupta, Chairman of Indosolar Limited concluded

“This first mega deal to supply high effi ciency cells of 17.4% average efficiency made at our state-of-art facility, is the start of the revival of large scale domestic manufacturing in India and we express our gratitude to Ministry of New and

Renewable Energy (MNRE)Solar Energy Corporation of India (SECI) and Government of India for providing an enabling environment to promote Indian manufacturing in this strategic field of clean energy.” – Gupta said Indosolar will immediately start-up 200 MW lines already o p er a t e d a n d c o m ple t e installation of its third super production line of 250 MW to be commissioned by the end of this year.

Vikram Solar Bagged Appreciation for Good Practices Award from FICCI Vikram Solar, internationally acclaimed Tier 1 enterprise which specializes in manufacturing of photovoltaic (PV) solar modules and EPC contracts for solar power plants has bagged the award for Appreciation for Good Practices in 3rd FICCI Quality Systems Excellence Awards for Manufacturing-2014. The selection was based on rigorous process of application evaluation, On-site Audit and selection by

Hon’ble Jury. Competition was with acclaimed auto industry giants and their world famous quality systems. The ward truly highlights the total quality management practices followed at Vikram Solar. The awards were presented to firms and companies for the recognition of their commitment to quality systems at the workplace and putting in place good quality systems in

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the organization. The purpose of this award scheme was to recognize organizations that have high performance quality system leading to a systematic improvement in organizational performance.Accepting the award, Gyanesh Chaudhary, Managing Director, Vikram Solar, said, “It is a matter of pride for us that Vikram Solar has received the appreciation for good practices award

from FICCI. Vikram Solar has always been committed towards strengthening the solar industry in India and will continue to lead the path for responsible growth”

June-July 2014

& EQBusiness Financial Goldi Green Signs Supply Contract with a German Company for 8MWp of PV modules Goldi Green, Indian leading Solar PV Module manufacturing company, have signed supply contract for its 250Wp - 60 cell PV module with a leading German EPC company having PAN Europe presence. This achievement again demonstrates Goldi Green’s ability to produce world class PV modules according to European standards. It also represents an important step along Goldi Green’s fastescalating course towards manufacturing of PV modules in India. Company is already known to many European EPC

companies as well as system integrators and expects many such orders very soon. Goldi Green (a part of SRK Group, India) an ISO9001:2008 company have set up state-of-theart PV module manufacturing facility which started commercial production in October 2012 with 35MW manufacturing capacity. Recently Goldi Green enhanced production capacity and now has 70MW manufacturing capacity. In line with commitment to produce quality modules with highest efficiency, Goldi Green

have strategic tie-up with globally acclaimed companies like Nisshinbo, Japan and Teamtechnik, Germany for technology and knowhow. To produce quality modules this facility have multiple quality check points as well as equipments including inline EL tester. Secondly Goldi Green modules are made out of majorly European raw materials. The Company have become one of the key players among photovoltaic module manufacturers in India which

manufacture modules in the range 10Wp to 300Wp using multi / poly crystalline cells. Goldi Green modules have successfully passed all the stringent quality tests at TUV SAAR, one of the reputed German Laboratories and are certified for IEC61215, IEC61730, IEC 61701 (Salt Mist Test). These modules are also marked for “CE” certification. Goldi Green is also well known for its commitment towards excellence, dedication, innovation, quality, technical capability in the solar industry.

Rays Power Infra Commissions another 10MW Solar Power Plant in AP With an eye on revolutionising the solar power industry, Rays Power Infra, an ISO 9001 & 14001 certified company and India’s largest solar parks owner, has announced yet another solar power Project commissioning 10MW solar power plant at Midjil in Andhra Pradesh. The total cost of the project is Rs.65 crores and has an estimated annual output of 18 million KWH. The power will be sold at competitive market prices which

are equivalent to commercial tariffs in Hyderabad. Rays Power infra director Mr. Ketan Mehta said “Completing the project within hundred days exhibits our team’s excellent capability and expertise in building solar power projects. I am proud of our team that they were able to pull it off in such a short span and I am sure that this will go on to become one of the best plants the country

has seen. “ “We strongly recommended that renewable energy is the only alternative solution as of now for solving the vast energy deficit in India and we are very glad to Partner with Rays Power infra for setting a solar power plant. The project was completed around 100 days before the stipulated time frame and professionally wellexecuted “stated by top official of Bangalore based real estate Company.

Talking about the project, it will supply power to all the corporate offices in Hyderabad of one of the largest banks in the world. Moreover, it is the largest third party open access project in Andhra Pradesh and sets an example for any consumer as to how to hedge their power tariffs. Thus, Consumers would be able to get power at much lesser price in comparison to what government provides them.

Emmvee synchronizes 10 MW Emmvee Beechaganapalle, Solar Park in a mere 3 months. Emmvee Photovoltaic Power Pvt. Ltd. has successfully commissioned 10 MW Emmvee Beechaganapalle, Solar Park in a mere 3 months. By this Emmvee has become the first company in the Indian Solar industry to achieve such a milestone. The Solar Park is located at Beechaganapalle, Hindupur district in Andhra Pradesh. The Emmvee Beechaganapalle is built in an area of 50 acres. Five solar power plants are built in this park for 5 Investors / Generators. Emmvee has constructed two plants of 1 MW 10

EQ June-July 2014

each, two plants of 2 MW each and one plant of 4 MW. The individual plants are constructed with separate metering systems and boundaries. Mr. Manjunatha D V, Managing Director and Founder, Emmvee Group, shares his thoughts about the Emmvee solar park. “We are proud to deliver this 10 MW project in 3 months, which proves our reliability and capability as a leading player in the industry. At Emmvee, we offer end to end solutions from Land to PPA for Investors / Generators. Owning a power plant is made as easy

as a Plug and Play system”. Speaking about the park, CEO of Emmvee, Mr. Krishna Revankar says, “Innovation is an infinite process at Emmvee. Emmvee Beechiganahalli Solar Park is an innovative technical possibility which has generated interest in new thinking process in DISCOMS and Investors / Generators”. Emmvee has provided end to end solution which includes Land (Land identification, registrations in the name of the Investor / Generator and required conversions), EPC

(Engineering Procurement and Construction), Statutory and Technic al approvals (Transmission line, CEIG and Synchronization approval) on behalf of the Investor / Generator. Emmvee facilitated long term PPA to Generators from reputed power consumers by entering into long term Open access agreement with ESCOMS Emmvee administers the Operation and Maintenance of the power plant, possessing the complete responsibility of uptime and ensuring the estimated energy generation of the plant.

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& EQBusiness Financial IREDA and PFC Green Energy Limited joins hands for joint financing of Renewable Energy and Energy Efficiency & Conservation Projects

Indian Renewable Energy Development Agency Limited (IREDA) and PFC Green Energy

Limited (PFC GEL) have entered into a Mem o r a n d u m of Understanding (MOU) to facilitate joint financing of Renewable Energy (RE) and Energy Efficiency & Conservation (EEC) Projects in the country.

The MOU was signed by Shri Satish Kumar Bhargava, Director (Finance) IREDA and Shri A. Chakravarti, CEO PFC GEL on 21st May, 2014 in the presence of Shri K.S. Popli, Chairman & Managing Director, IREDA and Shri M.K. Goel, Chairman & Managing Director, PFC along with Director(P), Director(F) and other senior officials from

both the companies. The MOU shall facilitate in expediting financial closure of Renewable Energy and Energy Efficiency Projects. This shall further enable meeting the growing fund requirements of India’s Renewable Energy sector to meet the ambitious targets set under the 12th plan period.

Asian Ddevelopment Bank’s Largest Direct Equity Investment in Welspun Renewables ADB invests US$50 million into Welspun Renewables The Asian Development Bank (ADB) has invested part of a US$50 million commitment of equity capital into Welspun Renewables Energy Private Limited (WREPL). This deal will help demonstrate that profitable investments are achievable in the renewable energy space and will help catalyze more private investments. Mr. Vineet Mittal, Vice Chairman, Welspun Renewables Energy Pvt. Ltd. said “With a vision aimed towards securing energy security for the country, Welspun Renewables has emerged as one of the leading independent developers of renewable energy projects in India within a short span of time. With this investment, the renewable energy sector has got a much needed shot in

the arm, it shows the promise that this sector can realize and ADB’s investment is a testimony to that. With this deal, we can only hope that India becomes a shining example of focusing on clean energy to meet its energy security needs and help build a cleaner, greener India for the generations to come.” WREPL’s power plants are among the highest generating projects in the country and have been built ahead of committed timelines, thereby helping the country meet its renewable energy targets. WREPL operates one of the world’s largest solar projects which is located in Neemuch district of Madhya Pradesh with a nameplate capacity of 151 MW (DC). Spread across eight states,

it has 328 MW (DC) operational capacity of renewable energy generation till date. The company plans to set up a total renewable capacity of 1,750 MW in Solar and Wind in next three years with an incremental capital outlay in excess of INR 11,000 crores. This will help annual CO2e emissions to be reduced by 2,912,700 tonnes. Consequently cumulatively generating 597 million units of clean energy and mitigating 533,494 tones of CO2 emissions. Close on the heels of the recent US$24 million General Electric investment in its Neemuch project; this is yet another positive milestone for the organization and a boost to the sector at large. WREPL’s

business operations are ISO 9001:2008 certifi ed – a first in the clean energy space. It has been awarded the Golden Peacock Innovative Service Award for its innovations, while the Global EPC Award recognizes WREPL’s contribution in solar project development.WREPL has adopted an environmental and social management system (ESMS) in compliance with ADB’s policies. The investment by ADB will help the country meet its target of 20 percent ener gy generation from renewable sources by 2020, generate employment in rural areas thereby contributing to the GDP of the country, reduce CO2e emissions, and help reduce the prevailing energy deficit in the country.

Waaree Energies to install solar thermal system at Mount Girnar in Gujarat India’s leading solar energy solutions company Waaree Energies Limited has received an order to install a 15,000 litres per day solar thermal system for a customer in the beautiful Girnar mountain range of Girnar in Gujarat. To be installed at the Devchand Dharmashala, the system will help reduce pollution caused

by other fossil fuels in Gir area, that is also a home to the largest lion population in the country. The solar thermal system will be based on BIS approved flat plat e collector to achieve temperatures of 60° C. Speaking at the occasion, Mr. Nikunj Shukla, SBU Head of Solar Thermal Division at Waaree, said, “This will be our

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third installation at Junagadh for Waaree Energies. This system will reduce a lot of air pollution which is caused due to burning of diesel, firewood and coal. Ours is a proven technology with a payback period of less than 3 years. This ensures repeat business for us.” Girnar, the mountain and its range are considered sacred and

it’s an important pilgrimage site for both Jains and Hindus, who gather here during the Girnar Parikrama festival. There are five important jain temples and few other hindu temples, which attract thousands of devotees every year. A lot of these pilgrims stay at dharamshalas on the foot hills of Mt Girnar.

June-July 2014

SO L A R ENERGY

First Solar Diesel Hybrid Project Gets Connected in Coimbatore Srini Viswanathan, Country Head- India, Solesa Solar Engineering Pvt. Ltd.

leading iron casting company in Coimbatore, Indo Shell Cast Pvt. Ltd commissioned one of the first solardiesel hybrid projects in India (94.08kW) using Solesa’s Hybrid Power Controller. The Hybrid Power Controller (HPC) is a cost effective solution specifically designed and developed for the India market by Solesa Solar Engineering Pvt. Ltd. The HPC allows solar energy to seamlessly integrate with the grid and diesel generator. Most industrial customers own generators in the multiples of 150kVA to 700kVA and turn them on as necessary. The HPC is ideally positioned to provide high returns for such customers. “We wanted to reduce our operating costs from our diesel backup generators and needed more reliable power than what we get from the grid. It was really hurting our business,” said S.V. Jagadesan, Managing Director of Indo Shell Cast. “We saw no better solution in the market that delivers uninterrupted power at an attractive cost like what Solesa provided to us. Our experience working with Solesa has been exemplary. They were very thorough in studying the load pattern of our factory and developed a customized engineering solution that we will benefit from for many years.” Solar energy becomes viable only when it is able to address the immediate energy issues faced by the Industrial unit. Currently, one of the major pain areas for industries across India is the high energy cost from diesel generators. The average cost of energy from diesel generators is Rs. 18-20/kWh ($0.32-0.36). In contrast, the cost of solar energy is Rs. 5.5/kWh over a 25 year period if the benefit of accelerated depreciation is considered. The saving of Rs. 12-15/kWh results in a fast payback period and high return on investment. If you are an industrial or commercial 12

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entity with dependence on diesel generators for your power needs, you must consider installing a solar diesel hybrid system after carefully understanding the below insights.

• Understanding potential issues from load ﬂuctuations during power outage : While each industrial unit will have its

during the middle of the day. Let us look at various scenarios of load to understand the challenges.

Scenario 1: Grid Working At 10.30AM, the load of the industrial unit is 500kW. The solar project is generating 300kW, the balance energy of 200 kW is being delivered by the grid. In this scenario, there is no energy requirement from the

Figure 1: Load proﬁle example of a typical factory

diesel generator (Genset).

Scenario 2: Grid not working

Figure 2. Grid is working along with solar

own load scenarios, below is an example of a typical industrial unit (Figure 1). Power cuts take place intermittently during the day and the load of the factory represented in dark green and light green is volatile during the 24 hour period. On the other hand, solar energy shows a bell curve with the highest generation

At 12 noon, a power outage causes the industrial unit to start the diesel generator. Assuming the load is still 500kW, and solar is producing its maximum of 400kW, the balance requirement of only 100 kW is delivered by the diesel generator. This substantial reduction in load (500 kW to 100 kW) on the diesel generator saves precious diesel fuel costs.

Scenario 3: Grid not working. Load drops At 2PM, the industrial unit has a change

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Figure 3. Grid has stopped working. Genset works with solar

in load (e.g, due to one of the machine shutdowns or reduced work load). In a matter of seconds, the load at the factory drops from 500kW to 150kW. Considering

Figure 6: Inverter response to load ﬂuctuations

to meet the new load conditions of the industrial unit (i.e., 105 kW)

Understanding your factory’s load profile and generation mix: The load profile of your factory will most likely be dynamic with constant changes in manufacturing or commercial activity during v arious times of the day. Also there will be constant changes in the voltage and Figure 4.. Grid is not working and load drops.Solar frequency in the grid synchronizes with genset to supply energy based on load. and in the diesel gen erator. The that the solar project has the potential to Solesa Hybrid Power Controller measures generate more than 150kW and the diesel these volatilities and incorporates them as generator has a minimum threshold of 45kW part of the detailed design. load, there is an inherent risk that the solar energy will reverse power onto the genset. • Understanding the electrical systems for reverse power protection: Solesa’s Hybrid Power Controller responds to This is one of the biggest worries that the minimum limit of diesel generator (i.e., 45kW) and accordingly reduces solar output electrical managers face while connecting a solar project to diesel generators. The factory is unlikely to face any reverse power issues if the solar system is sized at less than 20% of the diesel generator capacity. However, in situations where the system is sized at 3050% of the diesel generator capacity, or, the load decreases due to reduced manufacturing Figure 5: Schematic Layout of the Solar Diesel Hybrid system activity or maintenance,

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•

the factory faces the potential risk of reverse power. Solesa believes that a simple circuit breaker is not a long-term solution and a smart hybrid power controller is required to mitigate this risk. In Figure 6, you can see how Solesa’s Hybrid Power Controller sequentially switches off/on the solar inverters with changes in load during a power outage situation. Each line represents the output of each inverter. •

Understanding the spinning reserve of your diesel generator:

Solar energy is a renewable energy resource and dependent on the weather conditions. In cases where there is a sudden drop of solar power due to cloud conditions, there has to be a enough spinning reserve for the diesel generator to increase its generation for meeting the load requirements. This problem can only be avoided by intelligent design of the solar PV system and an intelligent solar diesel hybrid controller. •

Understanding the Energy savings versus Energy lost for over sizing :

Due to the minimum load restriction of the genset, there is a possibility of losing solar energy due to oversizing the system. Assume that a factory has an average load of 150kW and has a 250kVA generator that requires a minimum load of 70kW.Now, if the solar energy system is designed at 125kW, there is a 3% loss in solar energy on a normal day and the solar energy loss may reach upto 20% if the load drops to 70kW. Hence it is important to design the solar system for maximizing energy savings. • Understanding the potential savings due to Solesa Hybrid Power Controller: Generator data sheets provide fuel consumption patterns for various loads of operation. The below screen shot is from a data sheet for a 320kVA Caterpillar

June-July 2014

Figure 7: Screenshot of Genset data sheet showing that there is a 17 L/hr saving for every 25% reduction in load

diesel generator. The data shows that if the operational load reduces from 100% to 50%, the customer saves approximately 33.4 litres/ hour. With factories facing an average power cut of 2 hours per day, this translates to a savings of ~1670 litres per month or Rs. 1,00,200 per month.

in graph at 11.50AM and 2.10PM are the time taken for switch over from grid to diesel generator and vice versa.

Conclusion: Today, industrial and commercial

Figure 8: Typical Daily Usage Pattern of PV + Grid + Diesel.

Since the controller has the ability to manage solar generation in such a way that the diesel genset is loaded up at a minimum of 25-30% (depending on the kind of genset), your potential for savings is higher with the Solesa HPC. Figure 8 depicts how the HPC is able to consistently synchronize the solar PV system to the diesel generator and save precious diesel fuel by reducing the percentage load of the diesel generator. In Figure 8, we can see that there is a load drop at 10.30AM due to worker shift and breaks. From 11.50AM to 2.10PM, the grid stops working and the factory is dependent on diesel generator, as represented by the legend PV/Genset in the graph below. The inverter output shows that solar is producing its maximum during the middle of the day and offsetting diesel consumption. The drops 14

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consumers can utilize solar PV energy as a natural hedge to rising energy costs. Moreover, the advantage of tax benefits through accelerated depreciation provides an added fillip to the industry for choosing solar. In-depth economic analysis of a solar diesel hybrid system shows that a typical solar diesel hybrid project has an approximate payback period of anywhere between 1 year to 3.5 years and IRRs ranging from 24% to 73%.

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ORGANISED BY :

EQ SOLAR LEADERSHIP SUMMIT Friday August 01 , 2014 9 AM to 6 PM

Bhikaji Cama Place, Ring Road, New Delhi Regency Ballroom Part II & III Speakers 25+, Delegates 100+ (Expected)

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June-July 2014

T H E D E B A T E O N A N T I D UM P I NG D UT Y

Vineet Mittal

Vice Chairman Welspun Renewables Energy Pvt. Ltd.

Let us look at the larger picture. The need for harnessing solar energy came into focus when India realized that the cost of conventional energy was rising and we were not able to ensure country’s energy security. Through increasing adoption the solar projects are fast becoming cost effective. In last four years the tariffs have decreased from INR 17 to approximately INR 6.5 a unit, thereby closing on to grid parity; correspondingly the capacity has risen to over 2.5 GW. If the industry continues to receive support, the cost of solar energy will soon be on the same level as thermal based projects, if not lower. However, due to the recent motion of imposing duties on the importing generation equipment achieving grid parity and making solar energy affordable can seriously be impeded.

Enclosed some of the key issues or impacts from proposed AntiDumping a.

Possible closure of ~80% of module manufacturers in country who import solar cells as raw material, in favour of ~10% of cell manufacturers (3-4 companies) who import silicon wafers as raw material (despite wafers constituting ~ 60% of value of solar cells)

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Monopoly in favour of 3-4 companies who have a very small manufacturing capacity to process wafers (about 350 MW per year). It is worth noting that this capacity is not able to meet the requirements currently (since they only make to order and hence run at 50% of the capacity) and will cater to <15% of the demand in future.

MNRE, the Administrative Ministry concerned, and MOEF has opposed imposition of anti dumping duties in lieu of promoting low cost clean energy and achieving energy security for the country

Despite reservation of 375MW of solar capacity by Government of India for supply by the Indian producers as part of Domestic Content Requirement, manufacturers have not been able to procure order even to the extent of 200 MW so far – indicating possible derailment of solar power mission post anti-dumping duty. Generation of power by developers is a “pass through activity” and ultimate impact comes to the power distribution companies (mostly govt. owned) and thereby on the energy consumers. It is assessed that the impact of 0.60 US$ per watt anti dumping duty on cost of production of power shall be approx.

Rs. 3 per unit translating to additional project cost of ~ Rs. 3 crore/MW. Thus considering 20,000 MW targeted production of power in the country as part of the Solar Mission, the proposed anti dumping duty implies increase in project cost by ~ Rs. 60,000 crores, that needs to be borne by distribution companies, the government or the public in the form of higher cost of power or the subsidy. This will increase the input cost of industry thus reducing the profitability and possibly productivity of the industry. f.

This will increase the tariff by Rs. ~3 per unit thus taking the price back to Rs. 12-13 per unit making it expensive and significantly shift the focus from core areas like energy access, rural electrification and reduction of energy poverty.

The immediate impact of the anti dumping duty would be that about 700 MW solar projects awarded through bidding under JNNSM and various state governments would have to be abandoned. Already ~1000 MW has got stranded.

Huge program of rural electrification through distributed generation would have to be suspended.

In the solar power generation value

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chain, manufacturing accounts for only ~30% of jobs while ~70% of jobs are generating in downstream activities such as installation, EPC, O&M etc. Abandonment, suspension or postponement of planned programs will prevent these jobs being created. j.

a retrograde impact on our international trade relationship in multilateral forums viz. WTO especially with countries like China, US, Malaysia, Taiwan etc. that are our target countries for export. n.

Significant number of additional jobs in the balance of system (BOS) value chain i.e. inverters, cables, steel, cement etc. will suffer due to the stagnation in the sector. This will have direct adverse impact on the GDP of the country. There would additional dependency on coal and gas based thermal power generation.The climate damaging impact of these technologies are not factored into the current pricing especially the pressure on scarce resources in India i.e. water and land that directly impact the livelihood of millions of citizens. India would not be able to achieve its targets on climate change and sustainable development.

m. Efforts of India to use manufacturing sector and export for immediate economic rejuvenation and growth will suffer a setback since imposing anti dumping duty at this juncture will have

It will be against the vision and spirit of the incumbent Honorable Prime Minister of India who wants to focus on renewable energy as a growth driver and climate change mitigator thus positioning India as a progressive nation globally.

It is our suggestion that a more holistic viewpoint be taken on this issue and following measures be considered: a.

Put in abeyance the decision for imposition of anti-dumping duty.

Undertake a study to identify economic contribution (energy access, energy security, job creation, cost of electricity as an economic input for other industries etc) of all components of solar industry on a life cycle basis (25 years). Include

the comparative impact on CAD through marginal impact due to import of modules (wafers and cells are already being imported) and import of petroleum products (for diesel and kerosene). c.

Encourage foreign companies exporting to India to invest in the country through FDI route in possible combination with SEZ and other economic policies to establish India as an export hub for modules and other component.

Encourage Indian companies to drive efficient production to match the international price and thus contribute to the exports

Recognize that the technology in solar modules get updated continuously (almost every 6 months) resulting in higher capacity module that helps reduce land usage, installation time and increase reliability. Set up centers of excellence for undertaking R&D in PPP mode to drive the growth through innovation. They can focus on cutting edge inventions that should include the complete value chain of solar module (silicon, wafer, cell, module, EVA, junction box, solar glass) and other components.

T H E D E B A T E O N A N T I D UM P I NG D UT Y

Narender Surana

Managing Director Surana Ventures Limited

EQ : Media reports confirms as per findings of GOI, Ministry of Commerce & Industry, 20 companies sold Solar Modules/ Cells in India at half the regular prices in their home marketsâ&#x20AC;Ś What is your comment on this statement. NS : The findings of Ministry of Commerce & Industry are totally wrong. Modules are sold by all companies across the world at nearly the same price around USD 0.60/Wp to 0.65/Wp whether the moduels are coming from Korea, Singapore, Thaiwan or Malaysia, the price is the same. We are surprised the Ministry of Commerce & Industry has made such baseless findings which is incorrect. We have the quotation from manufacturers of each of these countries where the price is within USD 0.60/Wp to 0.65/Wp for supply of modules from these countries.

EQ June-July 2014

and implications and provide real status update NS : Certain Western countries such as USA and Europe have imposed anti-dumping duty on China because cost of manufacture in Europe and USA is approx. 35-40% more than the selling price in China. However, the selling price is nearly the same from Taiwan and Korea and we have quotation for the same from these countries. Anti-dumping duty has been imposed mainly to protect USA and Europe against Chinese companies to protect their own industry. However, countries like India, Singapore and Korea are exporting at nearly the same price from China into Europe and US.

EQ : Is the World Solar Manufacturing markets moving towards Domestic Manufacturing to avoid AntiDumping cases. NS : It is a wrong notion to assume that domestic market will be encouraged if anti-dumping duty are imposed. India would start importing in bulk from Asian countries, especially, Singapore and Korea by 20-25% more price, as the companies in Korea and Singapore will not be able to cater to the market and shall start increasing their price for Indian customers. Therefore,

further imports from USA will be cheaper over local market even after anti-dumping duty on First Solar. Infact, First Solar of USA has been offering Thin Film Modules at USD 0.52/Wp which is lower than the Chinese price and much lower than cost of production in India. However, the American technology is not acceptable in many of the countries due to usage of some chemicals such as Cadmium which are used in thin film modules.

EQ : India has more than 1 GW Pipeline of Solar Projects and many of them are under execution stages. What will be the impact on these projects if India imposes Anti-dumping duty on solar imports. NS : If anti-dumping duty is immediately imposed, the fate of 1 GB project in the pipe line would be hanging, as the project cost would go up by 50% to 60% and these projects will no longer be feasible, as thermal power generation by gas or any other source to encourage the maximum utilization of the abundance of sunlight in India, as it would be prudent that the government does not impose any anti-dumping duty on the 4 countries and jeopardize the entire solar energy program of our new Prime Minister and the encouragement that he has been

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giving to the Solar Sector.

EQ : In India…Who are against Anti-dumping duty and who are in favor of anti-dumping duty and Reasons for the same. NS : In India all the Project developers and most of the Module manufacturers are against Anti-dumping duty, as the cell manufacturers have formed a cartel and increased the price by over 40%. This will make all the solar power projects unviable.

EQ : What is your submission/ prayer to the GOI and what are the reply from GOI… Whats currently going on and the likely outcome. Kindly enlighten our readers in details about the ongoing antidumping case. NS : Our submission to the Government of India is that there should be no antidumping duty, as China, Taiwan, Malaysia and USA are selling this product at cost plus basis today. However, since the cost on production has come down, the Solar Power generation companies set up in India should take maximum advantage of the prevalent

price of demand to generate power by solar at every village and town levels to reduce the shortage of power in India without using any form of resource, other than sunlight solar power can be viable only at current levels for generating power, any anti-dumping measure will make solar unviable.

EQ : Some developers who are bidders in the DCR category of JNNSM P2 B1 say that Domestic manufacturers have formed a cartel and have increased prices and thus making their bids not viable and some say that the quality/ bankability issues keep them away from buying locally made solar gear…what are your comment on the same NS : It is true that the solar cell manufacturers in India have found a DCR category and are demanding 50-60% price hike from Singapore, Korea and China and it is thus made the DCR category of JNNSM P2 B1 unviable in spite of huge subsidy provided by govt. of India which will go into the coffers of Indian cell manufacturers. It is virtually

the DCR content in JNNSM P2 giving license to the Indian cell manufacturers to make money at the cost of government.

EQ : How much would solar energy cost more if Indian developers uses only domestically produced solar gears NS : The cost of solar energy will go up at least by 75%, if we were to use Indian produced solar cells / modules 9) What will be the likely impact if the antidumping duty is imposed on the country’s national & state solar programs. The entire solar program will be in jeopardy, if anti-dumping measures are imposed and the State Government and bureaucrats will discard use of solar power at every level incase the price goes up. It will be considered productive to impose antidumping duty in India especially at a time when solar energy generation can be a viable option to bridge the gap between the demand and supply of energy sector. Special Note: You have full liberty to add/modify/reduce the questions.

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T H E D E B A T E O N A N T I D UM P I NG D UT Y

Ajay Goel

Chief Executive Officer Tata Power Solar Systems Limited

EQ : Media reports confirms as per findings of GOI, Ministry of Commerce & Industry, 20 companies sold Solar Modules/ Cells in India at half the regular prices in their home marketsâ&#x20AC;Ś What is your comment on this statement. AG : Globally, the prices of solar cells and modules have been the lowest in India. These artificially low prices have severely impactedthe local manufacturing industrywith several players in the Indian solar manufacturing space running either part of their capacity or havingcompletelyidlecapacity. Hence, the findings of Directorate General of Anti-Dumping (DGAD) are not surprising and their recommendation to impose antidumping duties on import of solar cells and modules is a welcome move.

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AG : We would not like to comment on individual cases. Any policy that helps bring about a level playing field, whether in India or abroad, will help Indian manufacturers.

a fair process can continue to export to India without being subject to anti-dumping duties and contribute to the growth of solar energy in India.

EQ : Is the World Solar Manufacturing market moving towards Domestic Manufacturing to avoid AntiDumping cases?

AG : The policies, globally, are moving towards providing a fair and level playing field to manufacturers in their own countries. Companies which operate under a level playing environment are increasingly finding demand, not only from within their own domestic market but also international markets.

EQ : India has more than 1 GW Pipeline of Solar Projects and many of them are under execution stages. What will be the impact on these projects if India imposes Anti-dumping duty on solar imports? AG : India has a fair capacity of solar manufacturing which is bankable and meets international quality standards. Further, antidumping duties are only to dissuade subsidized imports and not completely stop import of solar products. Therefore, countries following

AG : The DCR category of NSM is designed for developers to pay higher prices to Indian manufacturers to ensure survival of the domestic manufacturing sector. This subsidy is in the form of incremental VGF available to DCR category winners which should be passed on to themanufacturers. To that extent prices are higher, but it would be best if facts are presented wherein any integrated cell & module manufacturer or a cell manufacturer has raised prices after the bids have been submitted. As regards quality, I can only say that as Tata Power Solar, we use European and Japanese manufacturing equipment and high

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quality materials for the manufacturing of solar cells and modules to deliver quality products to our customers. We have been exporting our modules for many years to Europe and the USA and have a very strong performance history of our modules.

EQ : How much would solar energy cost more if Indian developers use only domestically produced solar gears? AG : In the near term, the best reference would be the projects under the DCR category of JNNSM Phase 1 where the VGF difference is approx. Rs. 1.1 crs/MW. However, over the medium to long term, we feel that there will be a lot of investment in manufacturing capacity of not only solar cells and modules in India but also related parts of the value chain, leading to further cost reductions and making solar energy cost effective against other sources of conventional energy.

EQ : What will be the likely impact if the antidumping duty is imposed on the countryâ&#x20AC;&#x2122;s national & state solar programs? AG : Given the strategic nature of this industry, the Indian government has set promotion of domestic manufacturing in the solar sector as one of the key objectives of the Jawaharlal Nehru National Solar Mission. Imposing anti-dumping duties on the countryâ&#x20AC;&#x2122;s national & state solar program will protect Indian solar manufacturers from cheap imports and help meet the objective of promoting domestic manufacturing and energy security. If there is no support for domestic manufacturing in this critical sector, India risks being dependent on forign countries for our entire solar energy needs,which is critical for the country. As regards the impact of anti dumping duty, there are many companies which operate in countries that are not subject to ADD. Therefore, it is expected that the demand for solar cells and modules may be met through these companies as well as Indian cell and module manufacturers.

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T H E D E B A T E O N A N T I D UM P I NG D UT Y

Imposition Of Anti-Dumping Duties On Import Of Solar Cells And Modules â&#x20AC;&#x201C; Impact Analysis

A White Paper Analysing The Impact Of Imposing Anti-Dumping Duties On Import Of Solar Cells In India Raveesh Budania, Aashish Agarwal, Jeet Banerjee Headway Solar

ccording to a notification on 22 May 2014, the Directorate General of Anti-Dumping and Allied Duties (DGAD) under Indiaâ&#x20AC;&#x2122;s Ministry of Commerce and Industry has recommended imposition of anti-dumping duty on import of solar cells and modules from China, Taiwan, Malaysia and the US. Investigation into the issue began in November 2012 after Indian Solar Manufacturersâ&#x20AC;&#x2122; Association complained that imports from these target countries were damaging the domestic solar manufacturing.

and have been not considered as part of the domestic industry for this investigation. It was also highlighted that domestic thin film industry has negligible presence and the few manufacturers with nominal output of thin film solar modules in India reportedly rely on imports from target countries. Only three companies, with 12% of the total domestic production, represented the domestic industry during the investigation. According to DGAD, the domestic industry considered for investigation, comprising of Indosolar, Websol and Jupiter Solar, companies which

The Indian solar module market is highly fragmented, with First Solar leading the pack. At least two-thirds of the total photovoltaic capacity installed in India uses Chinese and Taiwanese cells. According to Headway Solar estimates, total Indian solar cell production capacity is approx. 350 MW annually, while the current annual demand is more than four times the domestic production1. Headway Solar team has analysed the impact of imposing anti-dumping duties on solar imports in this document.

2 Impact analysis 2.1 Domestic Manufacturing The objective of the anti-dumping duties is to protect local interests against imported products which may threaten the local industry. With the duties imposed, imported solar cells and modules will cost 1.15 - 2.3 times the recent prices and this is perceived to benefit domestic manufacturing. It is estimated that consequently, the Indian modules will cost 10-25% more than the currently prevalent Tier-1 photovoltaic prices. Figure 1-1: Proposed anti-dumping duty structure on solar cell imports

In its notification, DGAD has noted that there are 42 solar crystalline cell and/or module manufacturers in India. DGAD has noted that 39 of these manufacturers have imported subject goods from target countries, 22

EQ June-July 2014

do not import subject goods from target countries, accounted for about 1.2% of the Indian market share during the period of investigation.

Currently, almost all the cell manufacturing facilities in India are not operational. There were hopes for revival after 375 MW capacity was reserved for locally manufactured modules during the latest biddings under the phase 2 of National Solar Mission, but even after months

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of allocation, there are no clear signs of restarting the production.

lack of capital, chances of this happening are low.

Bolstered by the duty coupled with drying supply from China, many larger module manufacturers may plan to integrate backwards to produce cells. Out of the current lot, only a few manufacturers will be able to invest into cell manufacturing, which requires bigger quantum of investment than technologically simpler module assembling. Investors will be reluctant to put their money on such plans due to incongruent policies, volatility in an emerging market and international competitors. It should be noted that the manufacturers haven’t got much support from the lenders and investors even after 375 MW was reserved for ‘Made in India’ modules under the National Solar Mission’s Phase 2 Batch 1 (Domestic Content Requirement category). Absence of a clear long-term view of the business of these manufacturers will add to the investors’ doubts.

2.2 Project developers Project developers are the major opponents of the anti-dumping duties. More than 1600 MW capacity of solar projects are being developed under various state and central policies along with nominal capacity of ‘Group captive’ projects. Most of the projects rely on imported modules and place bids according to the price estimates and therefore, work on very thin margins. If the project budget shoots up even by 10% (such as in case of using local solar cells and modules), the project developers will have to cancel the ongoing projects. According to our estimates, in the best-case scenario, not more than 30% of the ongoing projects will be commissioned. Project developers will have the following choices to procure: 1.

Joint ventures and partnerships is another option for the local manufacturers riding on favourable rules, but chances of that happening are slim. For the potential JV partner, local manufacturers, with their limited market reach and know-how, will not be able to add substantially to the partnership. Contract manufacturing (case in point – Renesola) might be another possibility for the domestic manufacturers. While this might be beneficial over short-term, long-term the contractors would want to keep the important pieces of supply chain in-house. Mergers & Acquisitions books will not see prominent new entries related to solar manufacturers as they may not be regarded as good investment targets because of their financing health, limited technology capital, and nascence of the Indian solar market coupled with policy volatility. Potential acquirers such as Chinese solar giants have easier options to enter the Indian market – such as starting their own manufacturing unit here, or shipping products from a neutral location such as Thailand. Many module manufacturers might consider forward integration and come in as project developers during the project allocations in future, but inferring from low participation of domestic manufacturers in the latest NSM biddings where 375 MW was reserved for domestic supplies, coupled with

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From Indian suppliers: According to our interaction with project developers, Indian products have uncompetitive price-performance ratio and in present situation, Indian suppliers might not be able to service long-term performance guarantees on the solar panels. Project developers have also conveyed their doubts on capability of Indian suppliers to supply on time.

From international suppliers not based in target countries: Indian project developers would look at suppliers from countries such as Japan, South Korea and EU for imports under the new rules and duties. The modules from these places are costlier than the recently available Tier-1 Chinese suppliers’ modules by 10-20%, but will have the advantage of perceived higher quality and servicing of long term performance guarantees over the Indian ones.

Integrate backwards, upstream: Chances of strategic backward integration to manufacture cells locally to meet the new rules by any project developer are slim as it’s highly capital intensive and technically complex.

If the anti-dumping duties are imposed, more than 70% of the ongoing projects under central and state solar policies will be shelved. The next round of biddings will see lesser participation from smaller project developers, who have relied on competitive Chinese imports.

2.3 International suppliers With restrictions on Chinese, Taiwanese, Malaysian and American suppliers, prominent solar cell and module suppliers based in Japan, South Korea, Thailand, Singapore, Israel, South Africa and EU stand to benefit. After speaking with Indian project developers and EPC players, we reckon tier-1 suppliers from the aforementioned countries will be given preference over Indian supplies due to perceived better quality, cost competitiveness and ability to commit to long-term performance guarantees of the modules. The supplies from these countries will definitely be costlier than the recent Chinese tier-1 supplies by approx. 10-25%. The suppliers of target countries, specifically China, may consider the option of starting cell manufacturing in India and might implement used technology and equipment from their existing facilities elsewhere. The target suppliers may also consider the option of supplying from their subsidiaries or partners not based in target countries, for example, many Chinese suppliers have cell manufacturing facilities in South Korea. 2.4 Suppliers of components and services other than modules Engineering, Procurement and Construction services will cost more as the cost of procurement will rise along with cancellation of long term supplier contracts. While the bigger players will endure, smaller companies, which relied on smaller projects, might turn away from the sector, at least temporarily. Since most of EPC service providers are domestic, these will go through hard time till dust settles, whereas for international EPC players, things will be comparatively more difficult with higher pressure to cut costs. Inverter suppliers as well as others will also be affected with project pipeline drying up. While Indian investors might initially show enthusiasm to set manufacturing units, module assembly line suppliers will not benefit from the antidumping duties, which includes solar cells. Suppliers to cell manufacturers will be benefitted from the duties in the shorter run. 2.5 National Solar Mission Because of the increase in cost of solar modules resulting from repercussions of antidumping duties, almost all of the projects allocated under National Solar Mission Phase 2 Batch 1 – open category will be impacted

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negatively. Because of fierce competition during the bidding, project developers have been working on thin margins. Almost all of 375 MW capacity allocated under the category would consider cancelling the projects and loosing bank guarantees as a serious option. With fewer options of procurement in the market and pressure on domestic suppliers, prices of modules are expected to see an upward moment. Even the projects allocated under the DCR category may have to pay more for Indian modules. For the upcoming biddings under the central and state policies within the next one year, average tariff (or viability gap funding requirement) will go up by approx. 10%, and government will have to pay more for clean energy. For the next proposed batch of project allocations under the National Solar Mission, fewer bids per MW will be placed.

3 Conclusion According to Headway Solar analysis, the imposition of anti-dumping duty would negatively impact the Indian solar market. Since the period of investigation, the Indian solar market has evolved considerably. Imposing anti-dumping duties now will jolt the market momentum built over the last four years and shake the investor confidence. It should be noted that only a few manufacturers will stand to benefit from antidumping duties. Even DGAD has mentioned in its notification that only 3 out of 42 registered domestic manufacturers represent domestic industry. Anti-dumping duties will impact majority of Indian module manufacturers as well. Since these duties favour a select few within India itself, a review by regulatory bodies related to competition might be required. Most of the technology-based value addition to products sold by Indian manufacturers is done outside India. With lack of upstream technological capability, India has to depend on international suppliers which supply products at costs which are favourable to reaching India’s solar energy targets. Unless Indian companies are upstream integrated, anti-dumping duty imposition seems to be futile. It is highly improbable that National Solar Mission targets of phase 2 (ending 2017) or phase 3 (ending 2022) will not be

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Figure 3-1: Energy cost projections – utility scale2

achieved by depending on domestic supply. According to Headway Solar estimates, about 1600 MW capacity of solar projects are in pipeline under various central and state policies. After the imposition of anti-dumping duties, we estimate that not more than 450 MW of these will be commissioned. According to our analysis, to reach installed capacity milestone of 10 GW after completion of phase 2 of the National Solar Mission, the government will have to pay an additional INR 4,200 crores. In Headway Solar team’s opinion, this money might be better spent if state-owned companies such as BEL consider acquiring technical capabilities by overseas acquisition commercially functional technical entities. Also, pursuing programs similar to ‘Sunshot’ in the US, in collaboration with Indian technical universities and private ventures would be a better idea to promote domestic manufacturing. Also, according to our modelling results, grid parity of utility scale installations will be postponed by approximately a year. With increase in effective cost of solar power, group captive projects may have to wait for an extra year before market shows signs of adoption. Commercial rooftop solar projects, which have already suffered recently due to lack of government funds, will also suffer setback as costs rise.

the right time to focus on it. Downstream consumption over the period of time would lead to stability in the global market and India might stand benefitted by focusing on upstream integration at a later stage, which currently getting the benefit of cheaper supplies to create a robust market. With market consolidation in EU and the US already over, the global solar market is approaching a more mature state. Riding on reduced prices, India has been able to see solar tariffs dropping close to INR 6.5/kWh. At this point in the evolution of the market, Indian policy makers should focus on creating this market rather than promoting setting up of assembling shops with technological value deficit and without any buyers. Solar energy is of strategic importance to India, and Modi government understands this. Anti-dumping duty measure would certainly not please China and the US, which might reply with similar penalties on non-solar Indian imports. Indian solar industry would sincerely hope that the new government takes a wholesome view of the issue, gauge the long-term impact of antidumping duties at this point of time and take possible steps in the right direction.

Compared to the domestic solar manufacturing industry, downstream activities such as project development and O&M employ considerably more number of people. Anti-dumping duties will favour a handful of companies at the expense of thousands of employees and small and medium scale businesses involved in the Indian solar sector. While domestic manufacturing is important in the long run, this might not be

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Kolan Saravanan, centrotherm photovoltaics India Pvt. Ltd, Bangalore, India

here is a very high level of recognition to promote and add solar photovoltaic as a renewable source of energy to meet India energy defi cit and need. A “National Solar Mission” was launched in ‘08 with a target of 20GW of installations by the year ’22. This was to be met by setting up favorable manufacturing environment culminating in 5GW of annual manufacturing capacity supplying to the National Solar Mission. The state governments with profi table electricity boards like Gujarat led the way in adopting the solar power. More states are coming on board to meet the renewable obligations; while many private projects are capitalizing on the security and long term fixed cost of this energy. The attention seems to be on the solar installations target with very little focus to foster the manufacturing base. In this regard it is worth to note a white paper by SEMI PV group in 2012 on “Manufacturing Solar Photovoltaic Products in the United States”. The report makes a strong case to balance PV energy supply and demand within each region. They note that; “while solar PV creates significant number of jobs in the installation of solar modules, the long-term job creation in manufacturing will create greater economic stability”. This is because manufacturing will generate significant additional employment in adjacent industries. They cite “that each dollar’s worth of manufactured goods creates another $1.4 of activity in other sectors which is almost twice the multiplier for services”. Solar PV system is comprised of the PV module, inverter and balance of system (BOS). The BOS includes cables and frames that are typically sourced locally. The inverter suppliers have started to set up facilities to manufacture in India as it is more cost effective; once you factor in the import duty for inverters. The jobs to install the solar panels are local and cannot be outsourced away. At the end; it is the solar PV manufacturing jobs that India has to worry about. The attention of every country in the world is on the manufacturing job as they understand the stability and multiplier

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effect of manufacturing jobs. Governments including USA, European Union and China have gone to great lengths to support and defend their manufacturing with policies and use instruments like EXIM financing. The steadfast support for local manufacturing has made these countries take on trade disputes and launch anti-dumping investigations and even use WTO forum to settle disputes. The worldwide solar manufacturing went through rampant and excessive additions that led to a decline in price and fall of manufacturers. This helped India installations enjoy price reductions over the last two years on the misery of unprofitable manufacturers. India has a nominal installed capacity of 1.4GW per year to convert wafers to cells and 2.7GW of annual capacity to convert those cells to modules. The June ’14 report of MNRE is quite sobering that the solar cell manufacturing and module capacity in operation is only 25% and 50%. This is quite distressing at a time when manufacturers should be at 100% operation and expanding capacity to fulfill national solar mission objective. Several of these Indian manufacturers produce modules at the highest quality meeting International certification levels and export to Europe, Japan and USA. The Indian manufacturers pay duty to import raw materials to manufacture modules and can never be competitive to zero duty imported modules. The reversal of this inverted duty structure in the maiden budget of the new Government is welcome news. The Indian cell and module manufacturers were supported with a domestic content requirement (DCR) in NSM. This has however been disputed is under review at WTO with unclear outcome. The hampered Indian manufacturers are still vociferous in their demand for a level playing field. The local manufacturers had filed a petition with Department of Commerce for anti-dumping investigation of imported cells and modules from certain countries. After acceptance and 1.5 years of investigation; the department has concluded that there was injury and has recommended a set of remedial duty measures. The finance

ministry is reviewing this and need to notify the customs department for enforcing this duty. In the meantime; there is intense lobbying against the anti-dumping even by the powerful Transport Minister and Power Minister. If the decision is set aside; it is a wrong precedent that the anti-dumping investigation can be thwarted based on nonjudicial considerations and that justice will favor the strong and not the injured. It is quite clear that without a level playing field; solar PV manufacturing is set to bypass India. Bridge to India, a reputed consulting group, says that solar PV manufacturing can be fostered by “investment in R&D and engineering skills development, or the creation of special investment zones with fast track clearances” among other ideas while deploring the ADD. The Government would do better to listen to the manufacturers like Tata Power Solar who have been in manufacturing business for nearly 25 years and predict that “Indian solar manufacturing is dead in six months without trade duties.” Indian Solar Manufacturers Association has predicted that ADD will attract “FDI in solar manufacturing” and is needed in the long term interests of the mission. It will be a tragedy if obsession is on 20GW installation goal and not on the 5GW annual manufacturing to enable 20GW installation. We can also learn from the past mistakes when semiconductor manufacturing bypassed India. Since India’s import for semiconductor is expected to rival the oil import in the next decade; a policy with large subsidies and concessions was floated recently. After ignoring for decades; this subsidy was needed to lure the interest of two semiconductor manufacturing companies. In solar; if proper support is given now; Indian manufacturers could supply the required PV modules for national mission and even take leadership position to help our neighboring SAARC region. We do not need a large subsidy based solar manufacturing policy a decade later; but need action now. (The author has spent the last two decades in the manufacturing equipment sector and has closely followed the manufacturing cycles for semiconductor and solar PV manufacturing.)

June-July 2014

T H E D EB A T E O N A N T I D UM P I NG D UT Y

Now Is The Time To Support Solar PV Manufacturing In India – Not Later…..

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Ankit Kanchal

Director - Enrich Energy Pvt. Ltd. EQ : What is the history of your Group and Inspiration behind setting up Solar Park AK : Our group is focused on infra projects like cement, overseas mining, real-estate etc. The growing concern for environmental protection and ever increasing demand for energy security in the country has inspired us to make foray into renewable energy and solar sector having abundant potential in the country became our choice.

EQ : What potential do you see for solar market in India? How are you capitalizing on it? AK : Energy is amongst the most important levers of economic growth & absolutely vital to the sustenance of a modern economy. With a production of 1,006 TWh, India is fifth largest producer and consumer of the electricity in the world. Inspite of this According to the World Bank, roughly 40% of residences are without electricity. Solar is the prime free source of inexhaustible energy available to all. And, India is one of the sun’s most favored

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nations, blessed with about 5,000 TWh of solar insolation every year. Even if a tenth of this potential was utilized, it could mark the end of India’s power problems — by using the country’s deserts and barren land to construct solar plants.

to-end solution & services including common infrastructure like land, power evacuation, approach & internal roads, water, fencing, security & surveillance system, SCADA, etc. This offering becomes a very cost effective proposition for our investors.

Realizing the role of solar energy in shaping India’s Future, we are establishing SOLAR PARKS across the country. We have already commissioned INDIA’s First Private Solar Park of 40 MW in Solapur, Maharashtra and coming up with 350 MW of solar Projects across INDIA.

Investor has a choice of selection of technology, plants and equipment’s from leading manufactures. We also provide services for Life time “Comprehensive” Operation & Maintenance service; Power Sale , REC and its receivables management.

Our Mission is to develop solar parks with all necessary statutory clearances, infrastructure and support services and offer them at most competitive prices so that investors are attracted to set up solar plants which would benefit them and the society.

EQ : What are the features/ amenities/advantages you provide investors for setting up Solar Plants in your Park? AK : We provide complete turnkey, end-

EQ : What kind of Investors/ Companies would be attracted to consider investing in Solar Project in your Park? AK : Corporates & High net worth individuals/firms, who are interested in long term sustainable return on investment & those who are interested in tax breaks through Accelerated Depreciation Benefit up to 80% in the first year.

EQ : What are the major challenges faced in executing Solar Energy Park projects in India.

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AK : Investors are aware of the hurdles involved in establishing a Solar Power Plant with main one being “Land Acquisition”. Identifying large tracts of non-productive / barren land for setting up of power plant with reasonable infrastructure and acquiring it without hassle is really a challenge in today’s world. Another big challenge is various permits required to put up the project; there shall be a single window system for putting up renewable projects. Then there are other challenges like Power Evacuation facilities, Supply chain, Currency Fluctuation etc. All these issues can potentially hinder the execution of the project; but at ENRICH we are providing a hassle free solution to our investors and the investor without any hesitation can invest in our Solar Park and get the project in shortest possible time.

EQ : Tell us about some cutting edge “CONCEPT “introduced by your company in India. AK : We are pioneers in INDIA to introduce “PRIVATE SOLAR PARKS “concept, which provides a hassle free solution to our investors. This gives investor a comfort of investing in projects. We have already commissioned INDIA’s first private solar park of 40 MW in Maharashtra under REC Mechanism and now coming up with INDIA’s first private solar park under FIX PPA in the state of Telangana. For this innovative concept we were awarded Global Green Award , 2014 at Berlin , Germany amidst a tough global competition.

EQ : What are the various options/ packages/inclusions you offer to investors? Do you offer EPC or just Infrastructure etc…

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AK : We offer Turnkey Solutions, EPC Services, Rooftop, Power Sale management and REC Services to our clients

potential for growth in the installations in the sector. The well-laid Open Access Mechanism allows this B2B relation to take place in many states but utilities on other hand are not in favour of it on fear of losing high paying consumers and creating lot of hurdles for this transaction.

EQ : Kindly enlighten various Business Models/Investment Models etc…which would attract investments in your Park

EQ : What kind of government policy would foster growth of India’s solar power generation sector.

AK : Investors having interest in getting long term returns have approached us for setting up plants under various following options:-

AK : Growth of INDIA’s power solar generation sector shall depend on having robust, sound and well laid and implemented policies.

JNSSM phase I & II.

REC projects :-

Sale of power to state utility at Average pool price

ii.

Sale of power for captive consumption

iii. Sale of power to Pvt Third Party

EQ : What are the major risk factors pertaining to Power Purchase Agreements. AK : State Electricity Board (SEBs) backed PPA’s are perceived to be bankable , however due to poor financial health of SEBs , they carry risk of delayed payments and investors need to bridge finance for such eventualities ; to mitigate this bankers ask for additional securities to finance the projects. Third Party PPA’s are relatively safer as they are normally backed by Bank Guarantees; but they have set of challenges viz.. Open Access Permissions, Transmission Constraints etc.

EQ : Should power pricing mechanisms be left to market forces? AK : Once the power pricing mechanism is left out to the market, there is huge

The announcement of JNNSM & Gujarat Solar Policy have proved to be a foundation stone and growth engine for Indian Solar Industry. On the one hand it provided a great hope for the huge installations in the country but ironically on the other hand the criteria made for these policy have set a wrong trend for the industry and made a wrong startup for the industry. Unlike in other renewable sources of energy; in these 2 policies there were requirement of fulfilling net worth criteria, huge amount of EMD , BG , Bid Bonds submission required. Then the proprietorship & partnership companies were not allowed to bid the projects in central policies. These kind of requirements are not there in any other renewable energy sector and so should have been the case in solar industry also. Also mechanism like REC have shaken the investor’s confidence; 459 MW out of 2632 MW installed across India is under REC Mechanism and these Investors are worried about the uncertain future of the REC mechanism. It shall be in the interest of the country and the solar industry that government makes a robust uniform tariff solar policy across the country.

June-July 2014

T H E D E B A T E O N A N T I D UM P I NG D UT Y

Sunil Jain

CEO & ED - Hero Future Energies Pvt Ltd EQ : Media reports confirms as per findings of GOI, Ministry of Commerce & Industry, 20 companies sold Solar Modules/ Cells in India at half the regular prices in their home markets… What is your comment on this statement. SJ : An Anti dumping duty investigation report which was conducted by Indian government on behalf of a couple of Indian solar cell manufacturing companies has been submitted for implementation of ADD. This investigation was from a period of 2011& 2012. However I may not agree to the comment of half the price as claimed by manufacturers and agreed by Govt. If that is the case then none of them should be able to export to other countries which they are doing in large quatities.

EQ : Certain Western Countries such as USA & Europe has imposed Anti-Dumping on Solar Modules/Cells & Solar Glass imports and China has imposed Anti-Dumping on Polysilicon Imports. Could you enlighten the readers about the Solar Trade Wars & various antidumping cases, their results and implications and provide real status update SJ : Well the Anti-Dumping duty is nothing new and not only related to solar .it is a phenomena which is prevalent for every sector in the world. However Anti-dumping works when you have a large manufacturing capacity in the country and very low cost imports which hurts the domestic industry. In case of solar in India the total capacity at the time of investigation,2011-12 was not even 1100mw of which half was being exported by these very companies who were demanding Anti-Dumping. Such Antidumping methods do not serve the purpose for which they are meant to profit some companies. Let the domestic companies scale up to meet the huge demands for solar in India as well improve the quality systems to instill confidence in the IPP’S 28

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/developers / lenders so as to merit such measures.

EQ : Does your company prefer to buying solar gear locally or importing it…Kindly explain why SJ : I think if left to our choice would prefer importing till our domestic house is in order in respect of technology,quality ,systems and the financial strength of the manufacturers..

EQ : What will be the likely implications on India’s National & State Solar programs if the anti-dumping duty is imposed. SJ : It will almost reduce the solar plan to less than few 100mws and the whole concept of energy security and providing affordable power will not be feasible. So will go back to old days of Rs13/unit cost.

EQ : India has more than 1 GW Pipeline of Solar Projects and many of them are under execution stages. What will be the impact on these projects if India imposes Anti-dumping duty on solar imports SJ : It is like imposing taxes retrospectively only in a different form. All projects will become unviable and cannot be constructed. It will result in litigation with government over change of law and projects not seeing the light of the day.

EQ : In India…Who are against Anti-dumping duty and who are in favor of anti-dumping duty and Reasons for the same.

SJ : Well the markets are clearly demarcated for and against. All cell manufacturers around 4-5 in numbers are for Anti dumping while on the other side all developers/consumers/utilities/MNRE and many more are against.

EQ : How much would solar energy cost more if Indian developer’s uses only domestically produced solar gears SJ : It would cost around Rs11-13/ unit

EQ : There is market news of new opportunity in solar sector in India…Expected are new tenders under central & state schemes…What will be the likely implications of the current anti-dumping scenario on new tenders SJ : New tenders will have no meaning till such time the investors have confidence in the policy and tariffs including duty structure.

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Ketan Mehta

Director RAYS Power Infra Private Limited EQ : What is background and what inspired you to enter Solar Industry KM : RAYS POWER INFRA is started by 3 friends out of which 2 are passed out from IIT ROORKE and one is a Commerce Graduate. During our IIT Days the news of Azure Power starting 1 MW Solar PV Power Plant in Punjab was a major inspiration which ignited our interest. There was a lot of discussion about the potential of nonconventional energy among us and we always knew that this concept is going to be the next big thing and the Chairman of RREC is also from IIT Roorke

EQ : What is Rays Power Infra all about KM : We offer a plug & play solution which is kind of end to end solution offering Land, Power Evacuation, EPC Solution, PPAâ&#x20AC;&#x2122;s, REC Trading, Government Laisoning and the necessary consultation and all that is required for an investor to set up/own solar pv power plant. The Plant owners have various options to sell the power to third party or to discom or to government under JNNSM/ State Policies, or even captively consume

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the power themselves. The investor gets benefitted by a one stop solution by saving time, costs and project delays.

EQ : Where are your Solar Parks and what is the progress KM : We have a 100 MW Solar Park in Rajasthan and we are coming up with a Solar Park in Andhra Pradesh. In Rajasthan we have already commissioned 32 MW and in Andhra 12 MW has been commissioned and 20MW is under construction. The project in Rajasthan have achieved CUF above 20%. We are also coming up with a park in Madhya Pradesh. In all we have 50 MW Operational Capacity.

EQ : What is your opinion of different Solar PV Technologies KM : We are technology agnostic and have worked with thin film from NexPower, DuPont, Bosch and crystalline silicon from Canadian Solar, REC, Yingli. Regarding inverters, we prefer using Central inverters which has more than 98 % uptime. We have used AEG, Satcon. In Mounting Structures, we use galvanized of 2.5 mm thickness which can stand major sand storms.

EQ : Do you also work in the Roof Top Space KM : RAYS Power Infra has recently won Solar rooftop projects in Chandigarh. We are executing a 475 kwp roof top projects on 15 government schools under the aegis of Chandigarh Renewable Energy Science Technology Promotion Society (CREST) . For roof top projects, net metering (importexport meter) is very important so that the excess electricity generated by roof top systems can be pumped in the local grids. The advantage is that roof top solar owner needs to pay only for net power imported or gets FIT for net power exported. Andhra Pradesh is the 1st state to come up with just net metering policies fueling the roof top solar market. Other states are also working on the net metering policies.

EQ : Do you also offer any Financing Options ? KM : We have a subsidiary in Hong Kong with which we can offer loans in USD terms for 3-5 years at a nominal interest rate of 1-2% in USD terms.

June-July 2014

T H E D E B A T E O N A N T I D UM P I NG D UT Y

Michael LIU

Vice President of Marketing and Sales CSUN - China Sunergy Co., Ltd.

EQ : Media reports confirms as per findings of GOI, Ministry of Commerce & Industry, 20 companies sold Solar Modules/ Cells in India at half the regular prices in their home markets… What is your comment on this statement. ML : As no company would sell anything to anywhere without profits, and this is a common sense. Our prices are based on costs of materials plus countable profits. Solar market is very transparent and I believe anyone in this industry can calculate the price. We still have doubt with the calculation of the dumping margin of 100-110, injury margin 90-100 and denial of us market economy status as per the findings of GOI. The price we offered in home market maybe higher than India only because domestic market requires based on developers’ financial costs such as bank interest rates, government feed in tariff etc. And if the market situation in India is substantially the same, we will be more than 30

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happy to do so as long as our clients have profits to earn too. The price we quoted in Japan is even higher than our home market, that because they can take it and it still makes profit. So we believe the price we offered here is not half the regular prices in our home markets.

factors and cannot be simply described as “War”. We should understand that in development of all industries, there should be competition. Competition can increase efficiency, improve technology, reduce wastes and costs which give the industry a better future and keep the industry growing. During competition, competitors who represent different benefits may try to use all kinds of methods to end the competition, but it will harm the industry. In solar industry, the so called “Anti-dumping” does not help to create a fair environment, but only reduce the demand and slow down the progress of switching from traditional energy to renewable energy. If you compare the solar plants installation amount in EU one year before and after anti-dumping policy released, you will see what I mean. However, in EU, renewable energy has developed over ten years and the market is getting mature. So the damage may be controllable. But if the same issue happens in India, where a new solar market just starts to bring benefit to people, the damage will be much heavier to the local investors and will be out of lead.

EQ : Is the World Solar Manufacturing markets moving towards Domestic Manufacturing to avoid Anti

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our market economy status, that the current price is a fair and open one as decided by the market. Just like our company goal, the purpose of renewable energy is to protect the environment and bring all of us a better tomorrow. We sincerely request the India government to reconsider the conclusion and give the market a free will and give the people in India to choose its own partner.

EQ : If the Duty is imposed… Will it affect your pricing commitments to EPC Companies and Developers? What’s the solution of this problem ML : as you might know, the pricing of solar materials are changing time to time although not tempestuously. If unfortunately, the duty is imposed, based on the spirit of cooperation, we shall surly discuss with our clients and find out a fair solution for both sides. And we will hold together with our partners and friends in India to move forward.

Dumping cases. Does your company plans to open manufacturing shop in India and other key markets in the near term or long term. ML : India market is valuable and precious for CSUN and we have already earned a very good market share and reputation. If unfortunately, the anti-dumping does happen in near future, we will have to resort to other financially reasonable options and that may include the possibility of opening manufacturing facility locally just like what we did in Turkey where we run manufacturing facility with 300MW capacity both for solar cells and modules, too.

EQ : India has more than 1 GW Pipeline of Solar Projects and many of them are under execution stages. What will be the impact on these projects if India imposes Anti-dumping duty on solar imports? ML : From our source, many of them are forced to either postpone the progress or chasing the time to finish projects before imposes of Anti-dumping duty. It clearly send the signal that how bad this influence the

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EQ : What will be the likely implications on India’s National & State Solar programs if the anti-dumping duty is imposed? market. Like I mentioned earlier, price in market are decided by multiple factors. It cannot be raised just by one policy. If it does, the market has to take a very long time to adjust itself to survive. Let’s say, in India, for now, the interest rate is fixed, the land cost is fixed, the government feed-in tariff is fixed, it means the budget and costs of developer to build a solar plant is fixed. What happen if supplier of solar modules is forced to double the price suddenly? It causes an absolutely loss to build the plant and even bankrupt the developer. Everyone knows the plant was supposed to provide electricity to thousands of families, and such projects will be able to bring job opportunities to thousands of families. Now it is gone. And this is just an epitome of entire solar industry and its imports in India.

EQ : Could you share with our readers…Your reply to the GOI on the AntiDumping Case? ML : during the antidumping investigation, we fully cooperated and provide necessary documents and information to clarify the composition of our prices and

ML : first, it will slow down the progress of all existing programs, because people have to wait until find a solution to balance the costs. Then it will reduce the amount of the planned projects since the profits are gone or even create losses. Then the price of electricity will rise because of higher costs of power plants to repay bank loan. And longer repay term will slow down new projects again and make it a vicious circle.

EQ : In India…Who are against Anti-dumping duty and who are in favor of anti-dumping duty and Reasons for the same. ML : there are a lot of developers, EPCs and local suppliers who have foresight that the anti-dumping duty will only bring negative influences for now and future. We are with them and trying whatever we can to help. And for those who in favor of anti-dumping duty, I believe that once they realize the really needs of this country and the facts, they will be with us too. For whatever the reason they have now during the competition, I will say I understand but disagree with all due respect.

June-July 2014

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Rajesh Singh

General Manager – Operations , RenewSys India (A division of Positive Packaging Industries Ltd)

EQ : Please share the brief Background/ History of your Company & Group: RS : RenewSys is part of the ENPEE Group of companies, an international conglomerate having over 50 years of business experience in diversified industriessuch as flexible packaging, metal packaging, cement, industrial flooring, soaps, chemicals and electrical cables. The group has operations in India, UAE and Nigeriaand offices in major cities like Accra (Ghana), Dubai (UAE), Cairo (Egypt), Cape Town, Durban & Johannesburg (South Africa), Lagos (Nigeria), London (UK), Nairobi (Kenya), New York (USA) and representations in various other countries. RenewSys is the latest diversification of the group in the renewable energy sector.

EQ : What Inspired your Group to foray into Encapsulant & BackSheet Manufacturing

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RS : The ENPEE group has over two decades of expertise in Polymer processing. The manufacturing of EVA Encapsulant and Backsheet is just the product extension leveragingthe Group’s knowledge and experience in polymers. In addition, we all know that the renewable energy sector is one of the fastest growing industries coupled with high potential of growth. The effort towards environmental sustainability must start with a serious commitment to conserve, preserve and reserve energy, as well as using it effectively and efficiently. RenewSys™ is the ENPEE Group’s contribution toward this cause.

EQ : Kindly enlighten our readers with the Technology, Processes and Production Capacity of your Products RS : We manufacture EVA Encapsulant

‘CONSERV’ and Backsheets ‘PRESERV’ employing state-of-the-art European technologies and equipment in a clean room facility at Bengaluru. Our current yearly EVA Encapsulant line’s capacity is 6 mnsqm or 500 mw and Backsheet capacity is 14 mnsqm or 1800 MW. We plan to double the capacity of EVA Encapsulant in Q1 2015.

EQ : Kindly enlighten our readers for the “India Advantage” in valiantManufacturing Encapsulant &BackSheet in India RS : Till recently, Indian PV module manufacturers had no option but to import these components involving long supply lead time, quality and service related issues with heavy fund blockage. There was an urgent need to indigenize these products to make the country self- sufficient. RenewSys is the first company to start manufacturing EVA Encapsulant & Backsheet in India.

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Located at Bengaluru, we reach out to the customers on a maximum next day basis for deliveries, services or technical assistance. We understand the quality perceptions and requirement of each customer; and offer them required solutions. This support has been recognized by domestic module makers as they have made ustheir preferred supplier in a short period of time .

EQ : What are your Target Markets in terms of Geographies and Products (E&B for Modules used in OffGrid/Solar Farms etc or for c-Si or Thin Film Modules…) RS : We manufacture standard as well as tailor made products. Our products are tested and proven inextreme climatic conditions. We produce components for On-grid, Off-grid, C-Si and Thin Film modules. Our all products are IEC & UL approved. Our internal testing standard is higher than the IEC standard.

EQ : What are the key features and distinguishing factors your products have and the key advise you share with Module Manufacturers before selecting Encapsulant & Backsheet. RS : Our EVA Encapsulant ‘CONSERV’ is manufactured using ‘OS’ technology which results in ultra-low thermal shrinkage in final EVA sheet. This property of Encapsulant attributes to higher productivity, no cell or bus-bar shifting during the lamination processthus improving production efficiency andreducing module rejects. Also, CONSERV offers low melting temperature and exceptionally high light transmittance. The low melting temperature of CONSERV saves energy at lamination process and high light transmittance increasesmodule power output. These attributes has been acknowledged by many of our customers. Our Backsheet range,‘PRESERV’ has got the highest peel strength and tensile property retention post Damp Heat, Pressure cooker and UV exposure; and amongst the highest moisture barrier of all Backsheets in the market. These properties of ‘PRESERV’ help to increase life span and efficiency of PV modules.

EQ : Kindly explain the Critical

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Importance of these products ultimately in Performance of the Solar Modules RS : The important attributessuch as efficiency, power loss and durability of modulesare largely dependent on performance of EVA Encapsulant and Backsheets. Whilst an inferior Encapsulant can reduce the efficiency of the module drastically, a poor quality of backsheet can shorten the life of the module in the field well below expectation. Though the total cost component of both the items is only around 5% of the module Bill of Materials, they are amongst the major contributors for PV panel performance. Module makers have realized that it is better to buy these products from RenewSys and not compromise on the quality.

EQ : How is the scenario of Manufacturing of Solar in India at the present and What future does it hold RS : The Indian solar manufacturing industry is presently facing stiff competition from overseas and struggling for its survival. Our indirect tax policies are a major disadvantage for the manufacturing industry. Eg, there is no custom duty on import of the finished product but the raw materials used to manufacture these products are dutiable. In addition, domestic finished products are excisable at the full amount increasing the cost to the local buyer. These factors are the major hurdles slowing down the growth of the industry. We hope the new government will study the matter and take favourable action.

EQ : What is the current status of your manufacturing plant and what is the vision for the near term and long term future RS : As mentioned earlier, we have 500 MW capacity of EVA Encapsulant .We have forecast very strong demand and are doubling the capacity of EVA Encapsulant by Q1, 1415. We have 1800 mw of Backsheet capacity. Forecast demand for this product is again very strong.

collaborations.

EQ : Kindly elaborate on your various Products its Features and Technology RS : Currently we have three products; EVA Encapsulant, Backsheet and Bus Bar Insulation sheet. Our EVA Encapsulant ‘CONSERV’ is manufacturedemploying European state-of-the-art technology and equipment.Our IEC and UL approved ‘CONSERV’ is one of the best products in the market for thermal shrinkage, light transmittance and low temp processing. We manufacture Fast Cure, Ultra-Fast Cure and PID ResistantEVA. Our backsheet is manufactured using tailor made machinery with specific process parameters. We manufacture a wide range of backsheet constructions involving polymeric and nonpolymeric materials with tight tolerances. Our backsheets are the best in the market for mechanical property retention and moisture barrier. We also supply Bus Bar insulation sheet. This is a double side sealable sheet which gives excellent adhesion with both the sides of encapsulant and increase the durability of modules. Our raw material suppliers are selected aftera very stringent evaluation process.

EQ : Any other Point you wish to add or reduce from the above list. RS : We have a long term vision ofthe Renewable Energy sector. Our belief is that investment in qualified and experienced people,good processes and practices with top of the line equipment will give us long lasting benefits. We have invested significantly in setting up an exceptionally well-equipped R&D centre at our facility. We partner with our clients to create customized solutions and welcome corporate, academic and government agencies to work with us for the benefit of the industry at large.

RenewSys plans to export 50% of plant capacity from next year. We are also looking at other avenues in the renewable energy sector and are open to discusstechnical

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CO V ER ST O RY

Suresh Sugavanam Managing Director UL India

EQ : What led UL to launch the PV Plant Services? SS : ULâ&#x20AC;&#x2122;s PV plant services were developed to provide assistance to investors, developers and operators to make better and informed decisions as they assess the risks and uncertainties associated with designing, commissioning and operating a PV plant. From the design stage to the commercial operation date (COD) and throughout the in-service lifetime of a PV plant, factors such as safety, performance, availability, energy yields and verification are very critical.

this natural extension of UL is to offer a one stop solution to all parties involved in a PV power plant - no matter wherever in the world the plant or customer is.

EQ : What is the need/

EQ : What are the Mission/ Aims/Objectives with this new inclusion? SS : The main objective of this new inclusion is to help owneroperators, developers, financiers, EPCs, insurers and manufacturers manage risks associated with building and operating a PV plant. This additional service will also help in the identification of potential noncompliance issues early in the process to help avoid costly late-stage remediation and possible goto-market delays.

EQ : Explain the logic behind this natural extension of ULâ&#x20AC;&#x2122;s services. SS : UL has been a world leader in safety science with expertise in testing and assessment of renewable energy systems. UL has worked with various stakeholders in the PV value chain for years. The reason behind

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necessity felt to come up with these new services? SS : The high cost involved in setting up of solar PV systems and inefficiency in power generation has posed a serious challenge to Indian power producers in recent times. Along with these issues, improper installation and implementation practices have resulted in unexpected drops in yield and in turn defaulted on the expected energy production. In order to combat this situation, UL has come up with this new service.

EQ : Who will be potential clients and how will they be benefitted by this SS : The potential clients who will benefit from this service are owner-operators, developers, financiers, EPCs, insurers and manufacturers. The service will help them manage risks associated with building and operating a PV plant. Along with this, safety, performance and verification services can also help independently confirm manufacturers’ marketing claims.

EQ : How UL is further closer to make the PV market better

SS : To make the PV market better, UL is offering a master certification program for manufacturers of turnkey PV production equipment, enabling them to offer precertified designs to their customers and significantly reducing the cost of PV module certification. UL is also facilitating global market access with customized bundled services packages to optimize project turnaround time, minimize administration and reduce project costs. Their involvement in the CB Scheme, an international system for mutual acceptance of test reports and certifications, provides cost- and timeeffective increased global market access to the customers.

EQ : Every Plant, Location, Technology, Customer, etc is different when it comes to Solar Power Plants….Can you give tailored solutions and explain different options worked out and elaborate on the same. SS : We understand the different technologies deployed in solar power plants today as we have a global network of laboratories where we test those product for safety and performance. While UL has

off-the shelf services for PV Power Plants like certification to IEC 62446 standard, we are also open to deliver services that meet specific needs of a customer.

EQ : The UL’s new services for the downstream market will increase UL’s grip on solar market as it has been already catering the upstream market and some synergies and advantages ought to be emerged from this integration…Can you explain SS : UL today has the capability to evaluate right from the raw material like polymers to components like cables, connectors, fuses to products like PV Modules, Inverters, Combiner Boxes to the entire PV installation. Our diverse portfolio of services across the PV value chain enables clients to work with us as a one-stop-shop for all their needs during the various stages of a PV power plant build out and operation. This enables UL to leverage our knowledge from component testing and apply the same to PV power plant evaluation and vice versa.

UL accelerating Testing And Certification Services For Renewable Energy In India Renewable Energy scenario in India According to Government sources, nearly 400 million Indians have no access to electricity, while it is taken for granted in many parts of the world. In a bid to bridge this gap, over the last few decades, the importance of energy efficiency has taken on greater significance and results are taking shape, albeit gradually. Due to its topography and location, India has a huge advantage of availability of renewable energy resources, giving rise to one of the largest programs in the world for deploying renewable energy products and systems. In fact, it is the only country

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to have an exclusive ministry for renewable energy development, the Ministry for New and Renewable Energy (MNRE). Power generation from renewable sources is on the rise in India with the share of renewable energy in India’s total energy mix rising from 7.8% in FY08 to 12.3% in FY13. Banking on its immense potential, the Government of India (GoI) has set a renewable energy capacity addition target of 29.8 GW for the twelfth FYP, taking the total renewable capacity to almost 55 GW by the end of FY17. This includes 15GW from wind and 10GW from solar. In comparison to the last decade, the Government is playing an active role in promoting the adoption of renewable energy resources by encouraging private sector investments and mandating

the use of renewable resources.

Role of Testing and Certiﬁcation As the scope of renewable energy in India is increasing with new products and innovations entering the market, the primary focus should be on ensuring the consumer’s safety while handling equipment. Most of the countries with active wind energy programmes have their own certification and testing facilities for wind turbines. In countries like Denmark, Germany and Netherlands, type certification schemes for certification of wind turbines were in place much earlier. But during recent years a number of other countries such as India,

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China, USA and Japan as well as many banks that fund the projects realized the necessity of a thorough evaluation and certification of wind turbines and wind farms.

They also help manage risk by providing technical information and data for energy yield assessments, technical due diligence, and measurements and inspection.

Testing of equipment used in renewable energy for the precise prediction of power generation is a relatively new phenomenon in India. With a lifespan of 20-25 years, it is difficult to guarantee the safety and performance of products and components used in renewable energy systems. Testing and certification is the only way to ensure bankability in terms of safety, quality and performance of these products. Periodic surveillance of the components has to be carried out in order to maintain consistency of quality and ensure safety standards. Creating awareness on the potential safety risks of the various applications of renewable energy systems is crucial, as hazardous handling of equipment and material can be catastrophic if safety and quality control standards are not adhered to.

UL’s extensive range of services covers project planning to construction to ongoing operations and maintenance.

The Renewable Energy sector needs huge capital investments and usually has a long payback period which makes it necessary for them to have a higher degree of reliability and durability over the 15 to 20 years of its lifetime. It is practically impossible for manufacturers to sell equipment that have not been tested to international standards.

UL’s expertise in testing and certiﬁcation standards UL (Underwriters Laboratories) is a global independent safety science company with more than a century of expertise innovating safety solutions from the public adoption of electricity to new breakthroughs in sustainability, renewable energy and nanotechnology. A 120 year old organization with commitment and focus towards ‘working for a safer world’, UL initially focused on fire and electrical safety. Today UL provides testing and certification for many sectors including renewable energy. UL’s global experience in the renewable energy sector dates back to over three decades when the company wrote the standard for testing PV modules in the US. Since then, UL offers a suite of PV plant services that helps owner-operators, developers, financiers, EPCs, insurers and manufacturers manage risks associated with building and operating a PV plant. 36

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In the area of wind energy, UL’s services include certification for overall wind energy system, site assessment and wind turbine assessment, grid integration, turbine inspection and research. Site assessment includes placement and calibration of anemometers, energy yield assessment and range of services from the selection of site for the wind farm to analysis of existing wind measurement data.

UL’s India Strategy In India, UL has built a robust practice for testing and regulatory compliance in renewable energy over the last six years. UL entered into solar energy segment in 2007.UL India was involved with the MNRE (Ministry of Renewable Energy) for developing the standards for photovoltaic equipments. The Wind Energy practice of UL started in India five years ago. UL also acquired DEWI, a leading testing and Certification Company in the wind industry.

a large share of the energy mix is expected to come from renewables as India is a powerhouse when it comes to the availability of natural renewable energy sources. A consolidated effort between Industry and the Government is required to accelerate testing and certification which will ensure the bankability and safety of renewable energy sources in India. One of major challenges in terms of testing and certification for renewable energy is the lack of regulations and its strict enforcement. To this end, the Government can play a major role in ensuring the quality and safety of renewable energy equipments and plants. One way is by promoting locally developed indigenous or local technology products, providing more incentives will enhance the product quality and enforcing strict regulations for both imported and locally manufactured products. With a 120-year history in product safety, UL has been involved in advancing standards and benchmarks worldwide. With several ongoing initiatives, UL will continue to work towards accelerating the growth of testing and certifications services and also offer performance and verification related services to customers in India.

Over the last five years UL has made huge investments in laboratories in Bangalore to cater to the renewable energy industry in India. UL has a database of almost 80 customers in India from the renewable energy space. UL in India provides testing and certification of various renewable energy equipments like photovoltaic panels, solar inverters, wind turbines and also for the solar products like solar lighting equipments for street lighting and so on.

Way forward India has the potential to meet all energy needs with Renewable Energy sources. What it requires is better regulations to effectively capitalize on the energy potential in the country. Apart from providing incentives, the government should also provide fast clearances for projects, land acquisition and power evacuation. With the demand for energy growing rapidly and depleting coal and gas assets,

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I NT ERV I EW

Rodney Roland

Global Business Development Manager - Alternative Energy ITW Performance Polymers & Fluids. EQ : Please share the brief Background/ History of your Company & Group RR : Celebrating 100 years of history, Illinois Tool Works Inc. (ITW) is a diversified manufacturing company that delivers specialized expertise, innovative thinking and value-added products to meet critical customer needs in a variety of industries. With $14.1 billion in 2013 revenues, ITW employs approximately 51,000 women and men in 56 countries. These talented individuals, many of whom have specialized engineering or scientific expertise, contribute to our global leadership in innovation. ITW Solar focuses and coordinates the resources of ITW in developing and manufacturing adhesives, sealants, and coatings specifically for solar energy OEMs and installers worldwide. Our broad technology base as well as our customer application engineering process allow us to offer our customers a superior menu of options to suit their specific applications requirements. Because of ITW’s long history in a wide variety of industries we can offer the market solutions that address balance of systems and module needs. On the balance of systems side we offer polymer and fluid solutions for installers, racking manufacturers, inverters, micro-inverters, and power optimizers for both roof top and ground mount installations. On the module side we offer solutions for module edge sealing, frame sealing/bonding, and junction box bonding and potting.

EQ : What Inspired your Group to foray into Adhesive & Sealants Manufacturing RR : ITW has manufactured adhesives, sealants, and coatings for decades providing various solutions to industries as diverse as aerospace, transportation, construction, electronics, and heavy machinery. 38

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Our entrance into the solar industry began after focused research on the segment identified solid industry growth and applications that created synergies with our technology and application expertise.

EQ : Kindly enlighten our readers with the Technology, Processes and Production Capacity of your Products RR : As well as supplying a wide range of solutions for OEMs and installers, ITW Solar can develop and manufacture innovative solutions based on the unique needs of the industry and our customers. The following are examples of some of the technologies we manufacture: •

Polyurethanes

•

Silicones

•

Acrylics

•

Epoxies

•

Butyl

•

Methyl Methacrylates

ITW has a long history of developing innovative technologies with more than10,000 patents and patent applications. We always look at delivering more than just products. Through our “customer application engineering” approach, we are connecting our adhesive, sealant, and coating technologies and development capabilities to the needs of the solar energy industry The ITW customer application engineering process consists of three key steps: Listening, Evaluating, and Acting. This simple process has been part of the ITW culture since the 1920s and allows us to continue to deliver market-driven solutions based on customers’ needs.

Listening

Working with the customer’s technical staff to listen to their needs and deeply understand their applications.

Evaluating Evaluating how the global and technical capabilities of ITW can be applied to this set of customer needs.

Acting Acting to develop and manufacture a timely and cost-effective solution for the customer.

EQ : What potential do you envision in India’s Market in near and Mid-Term RR : India, ranking sixth in global capacity additions for 2013 is one of our focused markets, going by its high irradiation, growing energy demand, and large population. India already has an installed capacity of 2.5 GW which are incentive driven, utility scale and grid connected and are largely due to the startup of National Solar Mission of the country along with various other state level policies. The Solar market in India is new and not yet fully developed. It is challenging as policies are still being implemented and refined. Consistent national policy is essential for long term sustainable growth. India is very much a strategic market for our solar division and we strongly feel that it is a matter of time for the industry to take up a steady upward growth path with continuous impetus from the various government policies.

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Our “customer application engineering” process and broad technology range is well suited to serve this dynamic market as customer needs evolve with the growth of the industry in India. We look forward to working closely with the quality conscious and innovative Indian solar companies and associations to deliver superior bonding, sealing and coating solutions.

EQ : What are your Target Markets in terms of Geographies and Products (E&B for Modules used in Off Grid/Solar Farms etc or for c-Si or Thin Film Modules…) RR : ITW Solar is focused on key regions in the solar industry. Our team is positioned globally to provide local support in North America, Europe, and Asia. We have a particular focus on China, Japan, India, and the USA three of which were the top markets in solar energy last year. The solution areas we focus on are for both crystalline silicon and thin film PV module manufacturers. We offer solutions such as frame sealing/bonding, junction box potting and bonding, module edge seal, and more. We also offer these same frame sealing and bonding solutions for the solar heating collector market as well. On the BOS side we have a full range of sealants and coatings that can be used in sealing the roof mounts, protecting the roof from weather and the sun with our white roof coatings, and restoring older roofs so that a rooftop PV system can be installed. We also offer solutions for potting and bonding inverters, micro-inverters, and power optimizers.

EQ : What are the key features and distinguishing factors your products have and the key advise you share with Module Manufacturers before selecting Adhesive & Sealants RR : ITW Solar offers the marketplace a wide range of adhesives, sealants, and coatings. Our various technologies allow us to evaluate the application and deliver the right fit based on a customer’s needs and requirements. We have extensive lines of products meeting the various requirements for moisture resistance, thermal conductivity, electrical resistivity, UV resistance, adhesion strength, cure times, and many other focused strengths.

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The key advice I would share with module manufacturers is to discuss your application requirements with us. We have expertise in a wide variety of materials and can offer our customers a global network of technical knowledge and experience. ITW has technology centers and R&D facilities around the world including India. I would encourage manufacturers to utilize our resources to help them make informed decisions. It is important for OEM’s and installers to understand the interaction between the products and materials they are using in their manufacturing line and on a roof. We have come across situations where manufacturers have used incompatible materials together or simply used the wrong product/technology for a particular application. We can often recognize these situations and offer alternatives before it becomes a problem.

EQ : Kindly explain the Critical Importance of these products ultimately in Performance of the Solar Modules RR : Solar modules are deployed for 25+ years. They can be subjected to harsh environmental conditions, damaging UV rays, and extreme hot and cold. ITW Solar works with a manufacturer’s technical team to test and ensure that all of our products meet their specifications. Our focus on delivering valueadded and innovative products will only help to keep modules in service. Our excellent moisture resistance of our electrical potting solutions will protect junction boxes, power optimizers, microinverters, and more while our high thermal conductivity will dissipate the heat within the components. Our frame seal products are also excellent forms of moisture protection with superior and immediate adhesion strength to help keep the modules moving in the process and maintaining higher throughput. Our roof mount sealing products have been designed to have excellent UV resistance and moisture resistance and have been applied to commercial roofs since 1977. ITW Solar’s products are engineered to perform in a variety of conditions and situations and have been applied and proven in various industries which translates well to the solar industry.

EQ : What is the current status of your manufacturing plant and

what is the vision for the near term and long term future RR : ITW has global manufacturing and supply located in the USA, India, Europe, China, and Brazil. Our manufacturing locations are set up to be champions of innovation for differing technologies and so we can be close to the end markets that they are serving. Our global distribution networks ensure that we are able to get the products and solutions to the customers when they need them.

EQ : Kindly elaborate on your various Products its Features and Technology RR : ITW Solar has the capability to provide virtually any type of high quality polymer and fluid solution that is required by the industry. What really separates us from our competitors is our strong focus on our customer application engineering process. The customer application engineering process was first introduced in the 1920s when an ITW team “listened” to the automotive industry and heard that screws were coming loose due to extreme vibration. They took that information and “evaluated” our current technology and capabilities in manufacturing fasteners. Finally, they “acted” and developed the twisted tooth lock washer. This is where we get “Listening, Evaluating, and Acting” as part of the customer application engineering process. It’s a process that has been used in countless examples across various industries and now is making its way into the solar industry as we focus our efforts on developing the solutions and products that the solar industry will need today and in the next generation of product offerings. One such example is our new Tacky Tape 8700 PV Edge Seal for module edge sealing applications in glass/glass modules. We have developed this product to exceed in areas such as electrical resistivity, adhesion strength, and other critical areas. The proprietary backbone and integrated desiccant system in 8700 provides excellent environmental protection against moisture, corrosion, UV, and temperatures creating a long lasting protective barrier that maximizes the module’s life expectancy while remaining easy to use in its application and in the manufacturer’s process.

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T H E D EB A T E O N A N T I D UM P I NG D UT Y

DEEPAK GUPTA

Proposed ADD poses A Great Threat To The Development Of Solar Power In India. It Is Important To Understand Why.

he Ministry of Commerce has recommended imposition of antidumping duty on import of solar cells and modules from the US, China, Taiwan and Malaysia. This poses a great threat to the development of solar power in India. It is important to understand why.

has been spectacular progress in reducing

The National Solar Mission was launched in January 2010 with three main objectives. First, deploy solar power quickly to reach 20000 MW of grid and 2000 MW off grid by 2022.Second, reduce the cost of solar power and accelerate the process to attain grid parity. Third, develop adequate manufacturing capacity in the country. There is some conflict between the last two. Both have to be managed.

Admittedly, the global surge in deployment

Progress on achieving the first objective has been good with a capacity of almost 2500 MW already created. This is with the efforts of both the Central and State Governments, particularly Gujarat. There 40

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the cost of solar power with itdeclining from the almost Rs 18 levelised tariff calculated by CERC at the start to a range between Rs 5.50 to Rs 7 per unit depending upon the nature and extent of support provided. Grid parity may be achieved in the next few years. and manufacturing capacity contributed significantly to this cost reduction. The progress in the third has been mixed. Domestic nameplate capacity for manufacturing solar cells and modules is respectively 1216 MW and 2348 MW butoperational capacity is about 240 MW for cells and 660 MW for modules. The fundamental problem was how to make utilities buy higher cost solar power. Reduction in cost became the first requirement. There were other measures â&#x20AC;&#x201C; bundling with thermal power in Phase I; VGF given in Phase 2. The State utilities

remain somewhat reluctant to purchase. Therefore, a solar RPO was visualised to ensure a minimum purchase.This has not been generally enforced by the Regulators. The problem is the poor financial conditions of the utilities for various reasons and their inability to increase tariffs. Therefore, it is critical to have solar at the lowest cost possible to increase solar deployment.Incidentally, the Report of the Expert Group for Low Carbon Strategies for Inclusive Growth has suggested having more than 100 GW of solar power by 2032. Any measure that increases the cost of solar power would hamper deployment. Domestic manufacturing capacity was initially set up almost entirely for export purposes. Some of the expansion in the last few years was dedicated for export. The rise of low cost manufacturing, especially in China, led to the substantial collapse of the export market. Other capacities have been increased by companies based on their investment perspectives. One cannot set

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up capacities and then ask for protection. Even then adequate protection to domestic industry has already been provided. There was 50% reservation for domestic cell and module manufacturers â&#x20AC;&#x201C; 375 MW in Phase 2 batch 1, likely to be increased to 500 MW in batch II, and continued annually. Additional VGF support was provided to the developers to buy these domestic modules made from domestic cells. Besides, under the off grid segment, Government subsidies were only admissible to projects using domestically manufactured modules.Protection cannot become a monopoly, especially when domestic manufacturing is more expensive and not the most efficient. It is also likely that the proposed ultra large projects would have domestic protection. A quantity of 750 MW, of which 375 MW was in the open category, was bid in early 2014. PPAâ&#x20AC;&#x2122;s have been signed. Several State Governments had also bid out projects worth about 1200 MW. All these are in the process of implementation. Suddenly, the Anti-Dumping duty of between 11% to 80% on both cells and modules has been proposed against 4 countries. Naturally, this would make all these projects unviable and they will not be implemented. Costs will rise because developers now cannot procure modules from the lowest cost manufacturers outside. The cost of domestic modules will also rise because cells cannot be similarly procured adversely affecting domestic module manufacturers because earlier noncompetitive module manufacturers outside will enter the fray.Either developers will withdraw, or governments will have to give huge compensations or specific exemptions from duty. If they insist on implementation there will be legal disputes. Projects in the reserved category may also become unviable because developers say module prices are increasing as domestic cell prices have reportedly been raised. Moreover, the cell manufacturers have themselves approached SECI seeking extension of time to supply. The Mission schedule is therefore likely to be completely disrupted. There was already concern at the delay and lack of consistency in policy in the last 2-3 years.Now a duty has been proposed retrospectively much like the retrospective tax in spirit. In this climate even further bidding or deployment will have to be put on hold. Who will take the risk? How does one plan? Banks have been a bit hesitant to lend. Their hesitancy may increase.

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To achieve even the NSM targets 2500 MW has to be deployed annually. Domestic capacity simply cannot meet this demand. Costs of off grid would also increase where the competition is with subsidised diesel and kerosene. It is indeed ironic that we seek to increase the cost of solar power and subsidise the use of imported fossil fuels! The increase in cost would also impact the limited embryonic efforts being made to provide much needed energy access through solar mini grids in rural India. As it is there is considerable concern at the large pending subsidies for off grid installations because of the inexplicable reductions in the budget allocations of MNRE over the last two years. This proposal is an unfortunateexample of different Departments working at cross purposes. MNRE has the administrative responsibility for developing solar power which it has been doing in a planned manner after seeking approvals from the competent authorities. Suddenly, a line Ministry introduces a policy without need to go to the Cabinet which will derail these approved policies. MNRE had strongly opposed this proposal, as had many State Governments. These views have not been respected. Ministry of Commerce has taken over the task of development of Indiaâ&#x20AC;&#x2122;s solar policy!

policy has not yet been formulated. There is little domestic, and little value added, about making cells from imported wafers, imported components and equipment and at high cost. Wafers are entirely imported. There also cannot be blanket protection to promote domestic manufacturing. It has been argued by some that manufacturing will give employment. This is not correct at all. Employment will be generated by solar deployment, and that too with smaller grid plants and much more by off grid installations. Solar development in India is at grave risk. As an individual who happened to be involved fully with the planning of the NSM, I am very concerned at these developments. The Finance Ministry should allow this proposal to lapse. A short jointly conducted study can determine small and well calibrated levels for ADD to encourage global competition and a genuine level playing field. There would then not be any need for domestic content reservation where we are fighting in the WTO.

The process adopted by Ministry of Commercealso seems inappropriate. The draft proposal was made public only on 13th May. Only 3 days were given for giving views. Strong objections were raised. No consultations were held. MNRE repeated its objections. This proposal was announced in late evening of 22nd May when there was no Government and a new one was about to take office. Taking such a critical decision in this manner is unfortunate. There are also many anamolies in the material on the basis of which this decision was taken. Besides, the situation obtaining today, and likely in the near future during which these duties would be applicable, is completely different from that obtaining 1-2 years ago. There was over capacity in manufacturing. The exchange Rate is also very different from the calculated Rs 48.67 per dollar. How can this not be appreciated or understood? Domestic manufacturing must be supported. The critical need is to provide backward integration to produce silicon and wafers in India for which unfortunately a

June-July 2014

I NT ERV I EW

Anurag Garg

Vice President Solar Business, Schneider Electric India

EQ : How many MW’s of Solar Inverters have been supplied by your co in India. Kindly name the projects and the inverters supplied in them.

announced in last 2-3 years. 2014 seems

AG : We have as of now an installed base of more than 200 MW. This is within one year of operation and we are expecting another 300-400 MW to be installed before the end of this financial year. Almost 150 MW is installed in Rajasthan and is generating very good CUF despite the harsh environment in the deserts of Rajasthan. Our installed base is a combination of Inverters, SISS and few projects executed by Schneider Electric. We also have installation of our String Inverters and Charge Controllers in telecom towers, Off Grid and Rooftop in various parts of country and various applications like Hospitals, Hotels, Schools etc.

land acquisitions .

to be good with respect to the pipeline of approx 1.5GW available (of which 750MW is JNNSM Ph2).On time execution will be a key as developers still face challenges on

EQ : Market news of further 2.5 GW under JNNSM in 2014, another 2 GW Tender in A.P. and more state tenders…What is your forecast for the Indian Market (Grid Connected) AG : JNNSM 2.5GW if announced soon will be a real big boost as investors have larger confidence on the JNNSM timelines. I believe now with government’s focus on power and renewable sector, we should see a regular pipeline of 1.5 GW for next 2-3 years. This is expected to bring lot of stability

EQ : Indian Solar Market has been a stable 1 GW market over past couple of years and boost of 1.5 GW Pipeline (JNNSM, Punjab, Karnataka, Rajasthan, U.P.,M.P., REC Mechanism etc…) What is your view of the Indian Market. AG : Indian Solar market in term of execution may be between 700-800 MW in last 2 years which was due to projects 42

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in the market.

EQ : Will your company focusing on MW Scale Grid connected market or Roof Tops or OffGrid/ Rural Market ? AG : Schneider Electric will be focusing both on Utility Scale / Large Commercial Grid Connected Market as well as Roof Top/Small Commercial and Residential segment with both Of Grid and Grid Connected Offers.

EQ : What is your forecast of the different market segments (grid connected, rooftops, off grid, rural etc…) AG : We anticipate a more stable trend emerging in next coming years on all the market segments (grid connected, rooftops, off grid, rural etc) as solar is the fastest way to get connected to electricity in segment. On rooftop govt is taking enough steps to implement the various subsidies/schemes/ policies to bring enough momentum in the market. Moreover, with diesel prices further going up solar will become economical with respect to ROI by captive users.

EQ : Inverter market globally has seen lot of consolidation… What will be the Solar Inverter Market landscape in future. AG : Solar Inverters will see further consolidation and investors and developers will look more towards bankable inverter players. There is a lot of investment which will happen in coming years on the evolution of next generation offers in the inverters market as well.

EQ : Whats your view on IHS Comment “2013 PV Inverter Supplier Rankings: Asian Suppliers Tighten Grip

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as European Leadership Weakens” & “String Inverters Increasingly Used in MegawattScale PV Projects; Chinese Products and Microinverters Gaining Acceptance” AG : In Indian market, European manufacturers are still leading the market for Inverters. The only difference is most of the European manufacturers have moved their manufacturing to India to align with the market and meet the increasing demands. At this stage some investors are experimenting on using string inverters on a large MW scale power plant. There are different views on such experiments as services and operational efficiency of such plants is still to be seen in the Indian environment. Also ROI w.r.t. tarrifs attained by the developers is also to be seen when using the string inverters on a large scale MW plant . There is no visibility for Micro Inverters in Indian market yet.

EQ : What role will the storage play in the PV Plants in near term, mid-term and long term future. AG : Storage will play an important role in places where there is surplus power generation or captive power generation and usages. In places like in India, storage will require some more time for large PV plants as in current situation every KWh of energy produced is being consumed due to huge gap in demand and supply.

EQ : The Prices of Inverters have come down in past few years. With further Market Expansion, Technological Advancement & MArket Consolidation affect the prices…in what way & extent? AG : Technological Expansions / Advancements in Solar will help optimize the overall cost of solar systems. Inverters will also play an important role in the same. Technological enhancements will help reduce the cost of overall system, but it is not necessary that inverter prices may further come down. Maintaining Quality and reliability of the Inverters operating in Indian conditions will play an important role.

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EQ : Give us an idea of your products and services offered in the solar segment, manufacturing units, their locations, capacities and investments?

unique solution for Solar Agricultural / Commercial Pumps which can be used for AC Pumps. We have design and engineering capabilities and also have capability to help our customers with Concept and Financial Analysis to help them decide.

AG : Schneider Electric offers products and services in Solar broadly under 2 Categories i.e. Utility Scale and Large commercial (USLC) and Rooftop and Off –Grid.

EQ : Whats your view on the Indian Policy Framework and one piece of advise you would like to give to the government

In USLC, which typically is Solar Plant > 500kW, we have offers of products and solutions. In products, we have offers of Large Central Inverters starting from 540 KVA to 680KVA with highest efficiency in its class, Solar Scada, Array Junction Boxes, Transformers for Solar Application, HT Panel and Ring Main Units, UPS, DC Cables Harness with Connectors. For USLC Segment, we offer a very unique Plug N Play solution of Solar Inverter Sub-stations (SISS)/ PV BOX (ranging from 1080KVA to 1360KVA, 11KV and 33KV versions) which helps Developers and EPC complete solar projects within a short cycle time with many other benefits of reduced site activity, elimination of the need for coordination with various supplies, as SISS has almost all of the critical products for a solar plant inside a special containerized solution, suitable for harsh environmental conditions in which solar plants typically operate. SISS/PV Box is a fully integrated factory tested solution which has Inverters, Transformers, RMU, UPS,Ventilation System, LV Aux Control Panel and Scada Control with all these products and components preconnected and tested at our plant. Besides this, Schneider Electric has capability and products for evacuation switchyard of all Voltage Class from 11kV to 132 kV to evacuate solar power to Grid complemented with design and engineering capability for a complete Solar Plant. For Rooftop & Off Grid Segment, we have offers which cover various solar needs of Off Grid and On Grid with MPPT Charge Controllers of Various Ratings, Inverters suitable for Battery based and Non-Battery system for single and three phase system. Our offer of Charge Controllers is widely used in Telecom Towers which have started using Solar Power to off-set diesel and thus reducing its OPEX and also reduce CO2 emissions in environment. We also have

AG : Government has been amending its policies and incentives from time to time to attract investment in this sector which have been well accepted by developers and in some states response has been very encouraging. However, as we move forward, it appears much more needs to be done to reach the NSM Targets of Solar Power by 2017 and 2022. Government needs to look into barriers and processes causing delay after award of project to developers and help developers with policies which can speed up the implementation of projects (for e.g acquisition of Land / allotment of Land in Solar parks, Financing by Indian Banks, Evacuation issues for Large Projects etc). Also some minimum guidelines for tariff should be issued and state policies should have similarities to promote solar across the country. The states with less solar irradiation and higher demand for power should have additional incentives. While there have been differential tariffs for developers with and without accelerated depreciation, tariffs could also be differentiated by size of project as larger projects have advantages of economies of scale vs small size projects and can help promote distributed energy through small size projects. As Schneider Electric, we would always like to provide innovative products and solutions to our customers which help them make the most of their energy and provide services which are best in class to reduce downtime of our customer plants. We believe it is important to have state of art products and services to establish long term relationship with our customers.

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T H E D E B A T E O N A N T I D UM P I NG D UT Y

Government Of India Ministry Of Commerce & Industry Department Of Commerce (Directorate General Of Anti-Dumping & Allied Duties) Final Findings Subject: - Anti-Dumping Investigation concerning imports of Solar Cells whether or not assembled partially or fully in Modules or Panels or on glass or some other suitable substrates, originating in or exported from Malaysia, China PR, Chinese Taipei and USA. Whereas the Solar Manufacturerâ&#x20AC;&#x2122;s Association (hereinafter also referred to as the applicant) filed an application before the Designated Authority (hereinafter also referred to as the Authority), alleging dumping of Solar Cells, whether or not assembled partially or fully in modules or panels or on glass or some other suitable substrates (hereinafter also referred to as the subject goods), originating in or exported from China PR, Malaysia, Chinese Taipei and USA (hereinafter also referred to as the subject countries) for and on behalf of some domestic producers of the subject goods, namely M/s Indosolar Ltd, a 100% Export Oriented (EOU) Unit, M/s Websol Energy Systems Ltd, a unit in a Special Economic Zone (SEZ) and M/s Jupiter Solar Power Limited, a unit in the Domestic Tariff Area (DTA), (hereinafter also referred to as the domestic industry).

PROCEDURE The Authority notified the Embassies/ Representatives of the subject countries in India about the receipt of the anti-dumping application before proceeding to initiate the investigation in accordance with sub-rule (5) of Rule 5 supra. The Authority sent a copy of the initiation notification dated 23rd November, 2012 to the Embassies/Representatives of the subject 44

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countries in India, to all the known exporters from the subject countries, to all the known importers and the other Indian producers of the subject goods as per the addresses made available by the applicant and requested them to make their views known in writing within 40 days of the date of the initiation notification. Since a large number of producers/ exporters from the subject countries expressed interest to participate in the subject investigation, the Authority took resort to sampling in terms of Rule 17(3) of the Anti-dumping Rules. Along with the initiation Notification, a sampling questionnaire was sent to the producers/exporters of the subject goods in the subject countries, with copy to the concerned Embassies/Representatives in India, with the advice to fill in the same and provide to the Authority within 15 (fifteen) days of the date of the letter. The Authority also informed the producers/exporters of the subject goods in the subject countries that they will be intimated thereafter, to file the exportersâ&#x20AC;&#x2122; questionnaire response in the prescribed format (also MET Response in case of China PR), not later than forty days from the date of intimation of the sampling for detailed investigation by the Authority. The sampling questionnaire responses filed by MEMC PTE Ltd, Singapore and LDK Solar International Co Ltd, Hong Kong are not considered since Singapore and Hong Kong are not subject countries. Similarly, the sampling questionnaire response filed by Ningbo OSDA Solar Co Ltd and Jiang Su Runda PV Co Ltd are also not considered since the name of the country to which they belong

were not provided. Further, the sampling questionnaire responses submitted by M/s LDK Solar Hi-tech(Hefei) Co Ltd, China PR, M/s LDK Solar Hitech (Nanchang) Co Ltd, China PR, M/s LDK Solar International Co Ltd, Hong Kong and M/s Win Win Precision Technology Co Ltd, Chinese Taipei are also not considered as complete information as required in the sampling questionnaire were not furnished. Importers Questionnaire was sent to the following known importers/users of subject goods in India calling for necessary information in accordance with Rule 6(4) of the Rules: 1. Access Solar Ltd. 2. Ammini Group. 3. Jain lrrigation Systems Ltd. 4. KL Solar Company Pvt. Ltd. 5. Kotak Urja Pvt. Ltd. 6. PHOTONIX Solar Private Limited. 7. PLG Power Limited. 8. JJ PV Solar Pvt Ltd. 9. Ever Green Solar System lndia Pvt. Ltd. However, except Moser Baer Solar Ltd, Moser Baer Photo Voltaic Ltd. and Tata BP Solar India Ltd, none of the supporting parties furnished any costing/injury information. The Non-injurious Price based on the cost of production and cost to make and sell the subject goods in India based on the information furnished by the domestic industry on the basis of Generally Accepted Accounting Principles (GAAP) and Annexure III to the Anti-dumping Rules has been worked out so as to ascertain whether AntiDumping duty lower than the dumping margin would be sufficient to remove injury to the Domestic Industry.

Submissions made by the Opposing Interested

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Parties The submissions made by the opposing interested parties with regard to the product under consideration and like article during the course of the investigation and considered relevant by the Authority are as follows: Designated Authority has made only a “prima facie” determination of the product under consideration at the stage of initiation of the investigation and therefore it is impermissible to proceed with the investigation on the basis of prima facie determination. The present petition and investigation combined for Thin Film and c-Si PV products is inappropriate. Subject goods produced through Thin Film Technology must be excluded from the scope of the investigation as they are not like article. Solar cells of crystalline and thin film technologies differ in terms of basic raw materials, production process, physical properties, efficiencies, etc. Both have limited interchangeability/ substitutability along with different uses. A module to module interchangeability between crystalline and thin film technology is not possible. Domestic industry is not manufacturing thin film and therefore the same should be excluded from the purview of the product under consideration. As regards similarity in functions & usages between Thin Film and c-Si PV products, neither of the two products can generate useable electricity without the Balance of System (BoS). Thus, Thin Film and c-Si PV are only intermediate products whose only function is to get integrated with the BoS and then generate useable electricity. Since these are only intermediates of complete solar power plant, these per se do not perform any function (unless integrated into system) and are therefore not interchangeable. Only after integration with the Balance of System that the two products can generate useable electricity. That makes them two alternatives and not like article. Petitioners have sought to include cells, modules and thin film within the scope of product under consideration on the grounds that cells are like articles to modules and modules is like articles to thin films. It would be illegal to include two products in the product scope, merely because the two are

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like articles. Product scope includes both cells and modules and module is a value added product and hence should be treated as separate product. Also, all the domestic producers are not manufacturing modules. Moreover, there are a number of other types of solar power systems such as CSPV Systems (Concentrated Solar Photovoltaic) and CSP Systems (Concentrated Solar Thermal Power), which perform function similar to the function performed by PV systems but not included in the purview of the present investigation. Thin film and crystalline products are not substitutable either from producers’ point of view or from consumers’ point of view. The thin film producers cannot produce crystalline products and similarly crystalline product producers cannot produce thin film products. The two do not share the same product characteristics. The consumers cannot use the two interchangeably. Thin film and crystalline products are not homogenous product. US ITC has held in its findings that crystalline and thin film products are dislike articles. The European Commission also observed in its findings that thin film PV products have different physical, chemical and technical characteristics compared to the product concerned and are clearly excluded from the product definition. The Indian Designated Authority should also act accordingly. Petitioners contend that crystalline and thin films have been interchangeably used in India. This statement is factually incorrect. It is not possible for the consumers to interchangeably use thin film and crystalline modules. At the stage of conceiving the project, a developer has option of choosing between the two technologies. However, once the developer has chosen one of the two technologies and ordered the products including balance of systems, it is not feasible for the developer thereafter to switch to other technology. It is not possible to substitute thin film with a crystalline module at the stage of replacement. As far as expansions are concerned, if these are separate additions, then a developer can alternatively use any of the two products. However, if these expansions are linked to the existing project and share some of the balance of system from the existing projects, the consumer cannot replace a thin film with crystalline and vice-a-versa.

The petitioners have contended that crystalline cells/modules and thin film products are comparable in price at project level. Whether or not there is significant difference between crystalline cells/modules and thin films at projects level is entirely immaterial in deciding whether or not there is significant difference in the two at product level. However, the fact that the two are comparable in price at project level does not mean that the two are comparable in terms of price at product level. Thin film prices are lower than crystalline prices. Despite so, majority imports in to India are of crystalline cells. Huge imports of thin film only show that this is an alternate product available to the project developers. If these were indeed perfectly substitutable, given lower price of thin film, entirety or at least majority of the imports would have been of Thin Film products. There is no dispute that thin film and crystalline products are competing products. However, all competing products are not like articles. Indeed, all competing products may not be the same product, whereas all like products must be competing products. Indian products are inferior in quality and product warranties given by the exporters are for a longer period as high as 25 years. Submissions made by the domestic industry

Submissions made by the domestic industry 10. The submissions made by the domestic industry, regarding product under consideration and like article, during the course of the investigation and considered relevant by the Authority are as follows: Product scope is defined appropriately. There is no legal basis to say PUC should have been frozen at the time of initiation. Initiation notification defines PUC appropriately and without any ambiguity. Use of the term prima facie did not leave the PUC undefined and vague. The product under consideration (PUC) is Solar Cells whether or not assembled partially or fully in Modules or Panels or on glass or some other suitable substrates. There is no basis in the argument that solar cells and modules are different products. Solar cell is a solid state electrical device that converts sunlight directly into electricity

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by the photovoltaic effect. To make practical use, solar cells are placed on devices like panels/module etc. A module is nothing but an array of solar cells.EU has considered cells and modules as one product in their ongoing investigation against China PR.

used and mentions the certifications required for each. Thus, project developers do not have any particular preference for either technology and they use both the technologies interchangeably and simultaneously within the same project.

Difference in technology and allied process does not render products different. “Solar cells whether or not assembled in modules or panels” as per ITC (HS) classification clearly covers crystalline and thin film in cell and module/panel form.

Solar Cells are manufactured through two technologies in India i.e. crystalline silicon technology and thin film technology. Solar cells produced through both the technologies are covered under product under consideration.PUC includes solar cells of crystalline and thin film technology. Solar cells through both the technologies have same end use and are like articles since both technologies use semiconductor material as the basic raw material. Under c-Si Technology or crystalline technology, Crystalline Silicon wafer based solar cells are made separately. A mosaic of multiple cells is created on a substrate and the cells are interconnected by Copper (Cu) ribbon and encapsulated using EVA and back sheet. Under thin film technology, the semiconductor material is deposited on a substrate and then scribed into a mosaic of cells and the cells are interconnected by metallic connection and encapsulated with EVA and back sheet to form modules. Both products look similar in appearance. Solar cells manufactured under both the technologies operate on the same principle using photoelectric effects to produce electricity. Solar cells of both the technologies are used to build photovoltaic power systems that generate electricity. Solar cells manufactured under both the technologies use p-n-junction diodes to transmit electricity in the required direction. Under both the technologies, the photovoltaic power system is built by interconnecting the respective modules i.e., c-Si modules or a-Si modules. For interconnecting the modules, cables, inverters, switches, combiner boxes, etc are used under both the technologies. Such items are known as ‘Balance of System’ (BOS) to complete the PV power system. Modules manufactured using both the technologies are either fitted on rooftop or ground mounted. They have common installation and commissioning teams and BOS suppliers in the value chain.

Solar cells of both the technologies are sold through same distribution channel and even have same set of customers who are predominantly large scale solar power project developers.

Substitutability in the present case denotes availability of subject goods of two technologies with the project developers which are interchangeable also. The developer can choose any technology or any combination at the design phase. Availability of two technologies itself shows direct competition between the two technologies. Developer’s choice at the design stage is primarily governed by cost of modules. BOS, land etc are required under both the technologies. Thus, the choice of developer would always be to source the dumped material. Thus, CSPV and thin films are substitutes.

Even for off-grid market, there is no preference for technology. Capital subsidy provided by the government is based on size & application and is independent of technology used. The National Solar Mission policy document goes on to specify both the crystalline & Thin Film technologies can be 46

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Solar cells of Crystalline and Thin Film technologies can be simultaneously used in a power project and is a perfect substitute to each other. In the event of exclusion of Thin Films from the scope of anti-dumping duties the buyer’s choice would be for Thin Films only. Thus, subject goods of crystalline and thin film technology should be treated as like product. The final finding of USITC as quoted below shows cells and modules are not two different products: “Based on the record in the preliminary investigations, the Commission defined a single domestic like product, CSPV cells and modules (collectively “CSPV products”), that is coextensive with the scope of the investigations. In so doing, the Commission considered whether to treat CSPV cells and CSPV modules as separate domestic like products, and it considered whether to define “off-grid” CSPV modules as a separate domestic like product. No party had advocated in favor of finding any of these items to be separate domestic like products, and the Commission found no basis on that record to do so. In these final investigations, no party disagrees with, and the record continues to support, the Commission’s findings on these two issues from its preliminary determinations. Consequently, we do not treat CSPV cells and CSPV modules as separate domestic like products, nor do we define “off-grid” CSPV modules as a separate domestic like product.”(Italics supplied) As per MNRE information, usage of Thin Film modules in the Batch II (2012-2013) of JNNSM Phase I project is about 78% which was around 51% in JNNSM Batch I (201112), as against the global installation of Thin films which is around 15%. Hence, any claim of limited substitutability/interchangeability and user preference for crystalline technology due to space constraints/design/physical specifications etc is baseless.

The subject goods, which are being dumped into India, are identical to the goods produced by the domestic industry. There are no known differences either in the technical specifications, functions or end-uses of the dumped imports and the domestically produced subject goods. Hence, the goods produced by the domestic industry are ‘Like Article’ to dumped goods from subject countries. There is no difference in the dumped goods and the product under consideration manufactured by the petitioners. The two are technically and commercially substitutable and interchangeable hence should be treated as ‘like article’ under the Anti-Dumping Rules. Contentions of exporters especially from China with regard to inclusion of thin film in the PUC are contrary to their views before USA in the anti-dumping investigation concerning solar cells. Chinese exporters vide their association (CCCME) filed their response before the US authority. CCCME made a reasoned argument for inclusion of thin film in the PUC before the US authority. However, before the Indian Authority, Chinese exporters have argued that thin film is not like article. With regard to domestic industry not manufacturing thin film products, injury information with regard to one of the domestic producers of thin films products i.e. Moser Baer is provided to the Authority. Moser Baer should be considered within the scope of domestic industry within the meaning of Rule 2(b) of AD Rules. Without prejudice, even if the domestic industry is not

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manufacturing thin film products, they cannot be excluded from the scope of PUC as long as they are ‘like article’ to subject product being manufactured by the Indian Industry under rule 2 (d) of AD Rules. Past cases by DGAD and also foreign agency like EC upholds the view that production of a particular type by the domestic industry is immaterial once the ‘like article’ is determined. With regard to the contention that not all the domestic producers are manufacturing modules, it should be noted that cells and modules are not two different products. Cells are manufactured to be used in modules. Module is nothing but a frame to put multiple cells together. Dumping/injury analysis of cells to cell and module to module basis is illogical as imports of modules would have impacted the cell producers also and vice versa. The Authority notes that the product under consideration as defined for the purpose of present investigation includes subject goods of both crystalline and thin film technology. Subject goods of both the technologies are classified under the same ITC (HS) subheading i.e. 85414011. The Authority also notes that the Information Technology Agreement between India and other WTO members vide Ministerial Declaration on Trade in Information Technology Products No. WT/MIN (96)/16 dated 13th December, 1996, lists subject goods of both the technologies under unique heading i.e. photovoltaic cells whether or not assembled in modules or made up into panels’. Thus, by virtue of the same the product is imported into India without any Customs duties.

EXAMINATION BY THE AUTHORITY The Authority concludes that different technologies as such do not make end products different and subject goods of crystalline and thin film technologies are required to be treated as like article for the purpose of defining the ‘product under consideration’ in this investigation. While determining this, the Authority acknowledges that the subject goods of crystalline and thin film technology broadly differs in terms of (a) Technology (b) usage of basic raw materials(c) production process (d) plant and machinery (e) Balance of System and (f) efficiency levels. However, the Authority places its reliance on the following conclusive similarities and

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factors to uphold that crystalline and thin film products are ‘like article’ and therefore substitutable: Difference in technology do not alter or impede the end uses of solar panels through either technology; Even though the technology is different the principle adopted in both the technologies are similar i.e. photovoltaic process to convert sunlight into electricity; Even though the basic raw materials differ, technical character of raw materials used under both the technologies have the qualities to suit photovoltaic technology; Crystalline Solar cells are semiconductor p-n junction diodes which converts light into electricity. Similarly, thin film based solar cells are also semiconductor p-n junction diodes and convert light into electricity. There is a direct competition between both the technologies as the products of both the technologies can produce power out of solar light and developers can chose either of the technologies for their power projects in the inception stage and thereafter simultaneously in independent lines. Significant penetration levels of thin films products in India which is evident as 25% of the total imports from subject countries were of thin film products; Very insignificant price difference at per watt level between the products extending commercial substitutability as the difference in landed price of thin film and crystalline modules were less than 5% during the POI; Subject goods are offered in module/ panel form to the ultimate end user under both the technologies; The cost/pricing is also decided based on factors such as Watt per unit, efficiency of the cell/modules and the competition in the market parlance between the crystalline and thin film products are also generally based on such factors under both the technology; The Solar Cells of all technologies are classified under common Customs Classification chapter heading 8541 40 11 with common tariff heading. Imposition of antidumping duty on the product of one technology, which is functionally substitutable with the product of another technology would be futile, as the product having no duty can replace the other

in the market. The domestic content criteria laid down by the MNRE for the JNNSM projects do not differentiate between the technologies. In view of the above position, the Authority notes that solar cells made of thin film technology and crystalline technology is technically and commercially substitutable and is like articles within the meaning and scope of Rule 2(d) of the Anti-dumping Rules. The Authority also notes that since it is established that thin film products are like article to the crystalline products produced by the domestic industry, the question of nonproduction of thin film products by domestic industry is irrelevant. Even the opposite interested parties have acknowledged that solar cells made of thin film and crystalline technologies are alternative article. The Authority notes that by virtue of being alternative article, they are substitutable. Considering the Authority also takes note of direct competition between crystalline solar producers and thin film producers in the market. Discussion in the Annual Report of 2011 of one of the thin film producers from USA namely First Solar Inc, which is extracted below, shows that a direct competition between crystalline and thin film products exists: “Competition- The renewable energy, solar energy, and solar module sectors are highly competitive and continually evolving as these sector participants strive to distinguish themselves within their markets and compete within the larger electric power industry. We face intense competition, which may result in significant price reductions, reduced margins, or loss of market share. With respect to our components business, our primary sources of competition are currently crystalline silicon solar module manufacturers, as well as other thin-film module manufacturers and companies developing solar thermal and concentrated PV technologies. Certain of our existing or future competitors may be part of larger corporations that have greater financial resources and greater brand name recognition than we do and, as a result, may be better positioned to adapt to changes in the industry or the economy as a whole. Certain competitors may have direct or indirect access to sovereign capital, which could enable such competitors to operate at

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minimal or negative operating margins for sustained periods of time. While the Chinese exporters have argued in the present investigation that thin film is different from crystalline cells and vehemently pitched for its exclusion from the purview of the PUC, the Authority notes the following submissions made by the Chinese exporters through CCCME(Association) before the US authorities as extracted below from the USITC final finding Nos. 701-TA481 and 731-TA-1190 November, 2012: While the reason for exclusion of thin film in the case of EU and US is evident from the above paras, the Authority notes that in India the competition between thin films and crystalline products are very high and significant and the low efficiency of thin film modules hasnâ&#x20AC;&#x2122;t vitiated the growth of demand for thin film products. Consumers perceive both the products as similar and find them as perfect substitutes. Under such market conditions prevailing in India, exclusion of one product will open up backdoor entries to the other type nullifying the purpose of entire exercise. Thus, subject goods cover both crystalline and thin film technology. As regards the submission that other advanced technologies produced by the exporter also to be excluded the Authority notes that PUC covers crystalline and thin film technology only. As regards the submission that modules namely QSAR II (mono crystalline) and WARATAH (polycrystalline), New Edge modules, Quartech module with innovative 4 bus bar solar cell technology, BIPV modules and Andes Solar Home System, which are not manufactured by the domestic industry, should be excluded from the scope of the PUC, the Authority notes that such modules are not different products and are merely innovations or improvisations and therefore cannot be considered as different from the PUC. As regards the submission that Indian products are inferior in Quality and Product warranty given by the exporters are for a longer period as high as 25 years, the Authority notes that there are no evidences provided by the opposing parties to support such arguments. On the contrary, applicants submitted that Indian products are at par with subject goods imported into India and warranties as per the industry practices are provided by the domestic industry as 48

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well. Moreover, quality factor is not relevant in differentiating like articles in an antidumping investigation. As regards the submission of certain opposing module manufacturers that antidumping duty should only be imposed on modules and not on cells the Authority notes that solar cells and modules are not different products. Solar modules are basically an array of solar cells.

SCOPE OF DOMESTIC INDUSTRY & STANDING Submissions made by producers/exporters/importers/ other interested parties The submissions made by the producers/ exporters/importers/other interested parties during the course of the investigation with regard to scope of domestic industry & standing and considered relevant by the Authority are as follows: The majority of the petitioners is SEZ/ EOU units and therefore cannot be considered as constituting domestic industry under the AD Rules. Moreover, their production does not constitute a major proportion in Indian production and therefore the petition does not have standing under the AD Rules. All the three participating companies are not manufacturing thin films and therefore do not constitute domestic industry. The present petition has been filed by domestic industry that is almost non-existent in the domestic market. Out of the total demand of the product under consideration in India, the petitioner domestic industry has met a meager 1.32% of the Indian demand during injury period and a meager 1.04% during the POI. The total production of the Participating Companies is 12.10% of the total production in India. If cells and modules are considered as distinct products, the participating companies have produced modules attuning to only 1MW, which is 0.26% of the total production. The 25 % test regarding locus standi of the domestic industry to file the Application as mandated under Rule 5 of the AD rules has not been satisfied. Besides, a number of domestic producers of the subject goods have been excluded merely on the plea that they have been importers of the subject goods as well. The contention of the petitioner that

all other domestic producers are importers is a mere statement without any verifiable evidence. There is no evidence on record of the authority which establishes that all other producers are indeed importers of the product under consideration. There are 90 producers of subject goods in India and not 42 as claimed by the domestic industry. Applicants have deliberately not provided production details of all the domestic producers in India. Moser Baer being a major importer of the subject goods from the subject countries cannot be treated as domestic industry under the AD Rules. Further, any information pertaining to Moser Baer cannot be taken on record at this stage for the reason that the same has not been made available to other interested parties.

Submissions made by the Domestic Industry The petition has been filed by Solar Manufacturerâ&#x20AC;&#x2122;s Association on behalf of Indian producers of Subject goods. Three domestic producers i.e. Indosolar Ltd, Jupiter Solar Power Ltd and Websol Energy Systems Ltd have provided all relevant information for the purpose of the said petition. Petitioner has identified as per the information available around 42 producers engaged in the manufacturing of subject goods in India. Petitioner has provided names and address of all such 42 producers prior to the initiation of the investigation to the Authority. The claim of some interested parties that there are more producers in India is baseless. Although participating domestic producers have crystalline technology, Moser Baer, who has supported the petition, is a producer of subject goods using thin film technology. Post initiation, Moser Baer has provided complete information to the Authority and requested to treat them a part of domestic industry. Inclusion of Moser Baer within the scope of domestic industry would ensure availability of information pertaining to thin film. The Authority has the discretion to include Moser Baer within the scope of domestic industry even though Moser Baer has imported the product. There is no explicit exclusion of EOUs and SEZs from the scope of domestic industry or as a domestic manufacturer under Rule 2(b) of AD Rules. SEZ/EOU units need to be treated as part of domestic industry within

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the meaning of Rule 2 (b) and any deeming provision of FTP or SEZ Act are irrelevant for the purpose of AD investigations. EOUs and SEZs both are located in India and are producing the goods within India and carry made in India label and thus as per definition they are very much part of domestic industry of India. They contribute to GDP of India and Indian economy as a domestic industry and nothing else. By no stretch of imagination they can be called foreign industry (as opposed to domestic industry of India).

EXAMINATION BY THE AUTHORITY Following the initiation of investigations another producer in India i.e Moser Baer who originally supported the application and who has got two SEZ units to produce the subject goods namely Moser Baer Photovoltaic Ltd and Moser Baer Solar systems Pvt Ltd provided the relevant injury information and requested the Authority to consider them in the scope of domestic industry even though they have admittedly imported the subject goods from subject countries during the POI. In the event of Moser Baer being a major importer of the subject goods from the subject countries during the POI, Authority does not consider them as domestic industry under the Rules. Similarly, M/s Tata BP Solar India Ltd, one of the supporters of the application, also submitted some injury information post initiation. However, the Company acknowledged to have imported subject goods from the subject countries during the POI. In view of the above position, the Authority does not consider them also as domestic industry under the Rules. The Authority notes that M/s Indosolar Ltd (100% EOU), M/s Jupiter Solar Power Limited (DTA unit) and M/s Websol Energy Systems Ltd (SEZ unit) jointly constitute domestic industry for the purpose of present investigation. The Authority also notes from the submissions of the applicant that rest of the producers have imported the subject goods from the subject countries during the POI. Also, none of such producers haven’t come before the Authority by providing any information even though ample opportunities provided to them as per the rules apart from Moser Baer. And no information to refute the claims of the applicant either have been provided by such known other

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producers in India. The Production by the three participating producers holds 11.96% of total Indian production. However, 11.96% production by these three producers should be considered as constituting 100% as rest of the producers do not qualify to constitute domestic industry considering the imports made by such producers. Thus, the production of the applicant domestic producers as provided herein above accounts for “a major proportion” in the total production of the product under consideration in India. As regards the contention that the applicant constitutes only a negligible share in the Indian production and they do not even hold 25% of total Indian production, the Authority notes that the applicants account for “a major proportion” in the total production of the product under consideration in India. With regard to the negligible share in the total Indian production the views of the Authority are consistent with the view taken by the Hon’ble High Court of Madras vide their orders dated 23rd December, 2011 while disposing off the writ petition No. 23515 of 2011 filed by M/s Saint Gobain Glass India Ltd in the matter concerning dumping Soda Ash into India. The operative part of the judgment, inter alia, is as follows: (2)(b) “domestic industry” means the domestic producers as a whole engaged in the manufacture of the like article and any activity connected therewith or those whose collective output of the said article constitutes a major proportion of the total domestic production of that article except when such producers are related to the exporters or importers of the alleged dumped article or are themselves importers thereof in such case the term ‘domestic industry’ may be construed as referring to the rest of the producers”; As regards the eligibility of SEZ units for the status of domestic producer/domestic industry under the AD Rules, although there seems to be no precedent in any earlier AD investigations conducted by the Authority, the following points are relevant: a. Although the SEZ units are specially delineated areas beyond the Customs Tariff Zone, they belong to the national geographic territory of India. b. The SEZ Act and SEZ Rules allow the SEZ units to sell their products in the DTA subject to fulfilment of positive NFE and on payment of Customs duties and other applicable duties. c. The AD Rules, especially Rule 2(b) and 5(3), nowhere prohibit an

SEZ unit to be considered as a part of the domestic producer/domestic industry. d. When an SEZ unit or an EOU unit sells their products in the domestic tariff area, they also compete with their DTA counterparts as well as the imported goods. e. As claimed by the petitioner, the subject goods are IT products and part of the WTO IT Agreement and attract nil Customs Duty, thereby directly competing with the subject goods emanated from the DTA. After detailed examination the Authority determines domestic producers as provided herein above account for a major proportion of the total domestic production of the subject goods during the POI and constitutes domestic industry within the meaning of the Rule 2 (b) and satisfies the criteria of standing in terms of Rule 5 (3) of the Antidumping Rules.

MISCELLANIOUS SUBMISSIONS Submissions made by producers/exporters/importers/ other interested parties The miscellaneous submissions made by producers/ exporters/importers /other interested parties and considered relevant by the Authority are as follows: The import of the subject goods from the European Union during the Period of Investigation stands at over 5.5% of total imports into India during the POI, which is above the de-minimis margin. With regard to the price, the Product under Consideration is being imported at an assessable rate of Rs. 41 per watt. Thus, non inclusion of European Union (EU) as a Subject Country/Territory is incorrect and discriminatory. Filing of a separate anti-dumping application by the petitioners in respect of imports of subject goods from EU and Japan confounds this position. Thus the present investigation is void ab initio and therefore be terminated forthwith. It has been contended by the petitioners that imports of thin film have been done in view of Exim Financing available to the Indian consumers. Such being the case, there is no basis for the argument that thin film products are being preferred because of possible dumping of the product. The Eximfinancing available to Indian buyers is totally irrelevant to the issue of dumping. It has neither impacted normal value, nor it has

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impacted export price. None of the submissions made by Gujarat Borosil should be considered relevant for the purpose of present investigation, as the company lacks status of an interested party.

The petitioner had relied upon import information as per secondary source i.e. Impex Statistics Services for the purpose of application, which was relied upon by

Imposition of retrospective duties in the present case is not justified in view of the facts that it is not a case of massive dumping. The petitioners have not established their claim for retrospective imposition of anti-dumping duty on the basis of the requirements as laid down under Anti-dumping Rules. Imposition of antidumping duties on imported solar products is against the overall public interest of India. Levy of antidumping duties will only increase the construction costs of photovoltaic power stations and the electric energy produced by them, which is not in the best interest of India’s long-term and overall development. China and India are both BRICS countries with strategic partnership and have a vast cooperation prospective and numerous business opportunities in the field of green energy. India should handle this case with prudence, refrain from applying trade remedy measures in green energy, and encourage industries in both countries to enhance dialogue and communication. The Petitioners’ claim that stringent measures by EU and USA have put further pressure on Chinese producers to dump in a market like India is not correct. EU and China have reached a common understanding following the recent price undertaking agreement between the two nations. As a result, the “pressure” on Chinese producers to dump in India is buffered. ADD should only be imposed on modules and not on cells. Indian solar cell manufacturing is about 700 MW however the module manufacturing is around 1250 MW. Capacity of solar manufacturer being low coupled with poor utilization will lead to low module manufacturing capacity utilization. The volume from US is below de minimis levels and exclusion of erroneous import transactions would show negative dumping margin from USA which requires termination of investigation against USA.

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the Authority for initiating the present investigation. The petitioner is now in receipt of the information as per DGCI&S. A comparative analysis of import of subject goods into India as per DGCI&S and Impex Statistics Services is as follows: Petitioner has adopted the following methodology for making the above comparative analysis. In addition to our earlier submissions on issues of exclusion of EU from the scope of subject countries raised by the opposing parties, it may be noted that DGCI&S shows an import volume of 80,213 KW from EU as a whole which constitutes 5.73% of total imports into the country. However, the price reported by DGCI&S in case of EU is Rs61.43/Watt which is significantly higher than subject countries.

It is submitted that the exclusion of EU issue raised by the opposing interested parties are irrelevant on this factual position alone. The Authority may consider DGCI&S information for the purpose of findings in the present case. The following is the comparative an alysis of the imports data as per Impex Statistics on the basis of which the petition was filed and the investigation was initiated by the Authority and the DGCI&S data: The petitioner further submits that the Designated Authority may take note

of the comparison of DGCI&S and Impex Statistics Services data regarding imports of the subject goods from the various members of the EU during the POI as follows, which amply clarifies that the data from DGCI&S source shows reasonable prices vis-à-vis the Impex Statistics Services: It can be seen that DGCI&S shows a higher volume in case of EU coincided with a higher per Watt price which is Rs.61.43/- vis-à-vis imports as per Impex Statistics which showed a quantity of 77297 KW imports at a viii. Nevertheless, the imports from EU is a trivial issue as the same hasn’t breached the causal link between dumped imports from subject countries and material injury suffered by the domestic industry. The non-inclusion of EU in the scope of present investigation

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has in no way prejudiced the present investigation. Exclusion of EU upholds the fact that there was a fair administration of test of negligible imports as none of the individual members of EU except Germany appeared to have exported any commercial volumes to India. Individual examination of imports from Germany would show that imports from Germany were well below the 3% threshold to determine de minimis levels and other members of EU were negligible and were at 1% or less of the total imports into India. In any case, petitioner found marginal increase in the import volumes from EU in the post POI period and a petition is filed for initiation of anti-dumping investigation against EU and also Japan. At the time of initiation, the annualized volume of imports from subject countries were 801 MW in the POI, whereas the imports from EU were only 41 MW in which 24 MW was from Germany at a rate of Rs.54/ Watt which was higher than the rates from subject countries. Even the share of German import was below 3% threshold. Chinese producers are facing huge challenges due to over capacity and low demand in domestic market. Since EU and USA have imposed antidumping measures against China, the Chinese exporters may prefer to dump the material more intensively in a robust market like India. The importers are enjoying foreign funded dumping especially from USA. The importers/users are getting subject goods at dumped prices and also fund support. The present case is a suitable case for recommending retrospective measures as the injury is caused by massive dumping of subject product occurred in a relatively short time and considering the huge volume of such imports, unless duty is recommended retrospectively as envisaged in Section 3 of the Anti-dumping Act, the desired remedial measures of antidumping duties may not be accomplished in the present case. Considering the magnitude of dumping and injury suffered by the domestic industry, the anti-dumping measures should be imposed retrospectively. India has adequate capacity to meet the domestic demand. The import of dumped modules has a direct bearing on the market of supplier of glass, which is a major component of modules.

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The EXIM Bank of USA is the official export credit agency of the USA. EXIMâ&#x20AC;&#x2122;s mission is to assist and finance the export of US goods and services. Producers of solar cells from USA are getting financial assistance from EXIM Bank while exporting the material to India. Due adjustment for such financial assistance should be considered while determining normal value for US producers.

Examination By The Authority As regards the submission that Noninclusion of European Union (EU) as a Subject Country/Territory is incorrect and discriminatory and present investigations should be terminated on this ground alone, the Authority notes that as per the information furnished by the petitioner from the secondary source based on which present investigations were initiated, individual volumes from EU members except Germany were all very insignificant and do not appear to be of any commercial volume. Imports from Germany were 2.62% of total imports at a price of Rs 55/Watt which was much higher than average price from subject countries. Rest of the EU members reported very negligible imports adding all of them together made the overall percentage from EU at around 5.46% in total imports into India. Thus, it has not been shown that imports from EU have had significant adverse effects on the domestic industry to such an extent to break the causal link between injury to the domestic industry and dumping from subject countries. Exclusion of EU does not negate any injuries if caused to the domestic industry by dumping from subject countries. The import data obtained from the DGCI&S and relied upon by the Authority for the purpose of the present findings shows an import of 80.21 MW of subject goods from EU at an average price of Rs61.43/Watt which is much higher than the average price of Rs47.98/Watt reported from the subject countries and also significantly higher than the net sales realisation of the domestic industry. Therefore, the imports of subject goods from EU could not have affected the situation of the domestic industry to the extent to break the causal link between the dumped imports from the subject countries and the material injury suffered by the domestic industry.

As regards the submission that imposition of duties are against Public interest, the Authority notes that the purpose of antidumping duties, in general, is to eliminate injury caused to the Domestic Industry by the unfair trade practices of dumping so as to re-establish a situation of open and fair competition in the Indian market, which is in the general interest of the Country. Imposition of anti-dumping measures would not restrict imports from the subject countries in any way and therefore would not affect the availability of the products to the consumers. The basic intent behind anti-dumping measures is to create a level playing field for the domestic industry vis-Ă -vis dumped imports and not to restrict the imports, which can continue though at higher cost. The imposition of antidumping duty in the instant case would not only enable the domestic industry to revive themselves in a more competitive manner, it may also leverage further Indian and foreign investments. Apart from the submissions made by various interested parties which are considered relevant and addressed by the Authority, the following views were also received from the Ministry of Environment and Forests (MOEF), Government of India, Ministry of New And Renewable Energy (MNRE) Government of India, Department of Electronics & Information Technology, National Manufacturing Competitiveness Council (NMCC) and Centre for Science & Environment (CSE): a) The MOEF opined that imposition of anti-dumping duty will lead to increase in the cost of generating solar energy. b) The MNRE opined that the scheme of reserving/procuring solar power with a condition of domestic content may provide enough business and protection to the manufacturers of cells and modules in India. MNRE further opined that imposition of antidumping duty may have adverse implications on the ongoing JNNSM projects. c) NMCC opined that the domestic solar manufacturing sector is suffering from cheap imports from China etc. Anti-dumping duty is essential for nurturing this sunrise high technology sector. The nascent domestic manufacturing industry is in difficulty and delay in imposition of antidumping duty is coming in the way of the achievement of one of the primary objectives of National

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Solar Mission which is the creation of the domestic manufacturing capacity. d) CSE opined that the solar manufacturing sector in India is not in a very healthy state to-day. Therefore, the domestic solar manufacturers should get a level playing field so as to be able to compete with the exporters from USA, China, etc. e) Department of Electronics & Information Technology opined that in the absence of antidumping duty, the solar industry is facing extreme financial stress. Almost all solar cell manufacturers have been referred to BIFR and further investments have dried. Unless domestic manufacturing takes place, there is threat of perpetuating dependence on import of solar products and technology.

Market Economy Treatment, Normal Value, Export Price And Dumping Margin The Authority notes that in the past three years China PR has been treated as a non-market economy country in antidumping investigations by India and other WTO Members. China PR has been treated as a nonmarket economy country subject to rebuttal of the presumption by the exporting country or individual exporters in terms of the Rules. 33. The submissions concerning market economy, normal value, export price and dumping margin made by the producers/ exporters/importers/other interested parties and considered relevant by the Authority are as follows: The normal value as arrived by the domestic industry in respect of the subject countries is incorrect. The dumping margin in respect of exports by First Solar from US and Malaysia are de-minimus. Therefore, the investigation is required to be terminated immediately. Canadian Solar Inc, China PR is a market economy entity and Authority should arrive at the normal value of exports of the subject goods on the basis of the data on costs and pricing structure as provided by the exporters. Despite the fact that China PR is considered as a NME country, China Sunergy Group operates under market economy principles and should be treated so by the authority for arriving at the normal value. The submissions made by the domestic 52

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industry concerning market economy, normal value, export price and dumping margin and considered relevant by the Authority are as follows: None of the Chinese producers satisfy market economy status and therefore normal value should be constructed as per Para 7 of Annexure 1 of the AD Rules. Recently concluded investigations by EU and USA found Chinese producers operating under Non Market Economy conditions and all the producers from China were denied MET. Applicants reiterate that the circumstances based on which EU and USA denied MET to Chinese producers hasnâ&#x20AC;&#x2122;t changed and India also should deny MET to any of the producers from China. India is an appropriate surrogate country for Chinese producers. Therefore cost of production in India should be taken for construction of normal value with due adjustments in respect of China PR. 35. The Authority notes that subject goods, originating in or exported from China PR, has been subjected to anti-dumping duty in European Union and USA in the recent period. EU and USA did not grant MET to the Chinese companies on the grounds of prevailing Non Market Economy conditions in China and the inability of Chinese producers to meet all the MET criteria. The Authority notes that the following findings by EU and USA are relevant;

US (DOC) The Authority notes that Baoding Tian Wei Solar Films Co., Ltd did not provide consent for verification of their data/ information. In view of this the Authority treats the said company as non-cooperative and also does not treat the company as market economy. The Authority further notes that M/s Wuxi Suntech Power Co Ltd, Wuxi, China PR has not claimed market economy treatment. The following Chinese producers/ exporters who claimed market economy treatment and filed questionnaire response to that effect, could not substantiate their claim during on the spot verification and withdrew their market economy treatment claim by furnishing a letter to that effect: CEEG Nanjing Renewable Energy Co., Ltd -China Sunergy (Nanjing) Co., Ltd -CEEG (Shanghai) Solar Science Technology Co., Ltd

-Canadian Solar Manufacturing (Changshu) Inc -Canadian Solar Manufacturing (Luoyang) Inc The verification reports were sent by the Authority to the concerned Chinese companies for their comments. The Authority notes that in response to the verification report, as regards their MET claim, the above stated Chinese companies stated that it was found appropriate to waive the right for market economy treatment as due to time constraints it was impossible to satisfy the MET claim by the companies. The Authority notes that the antidumping investigations are time bound. The intimation regarding the verification and the obligation of the concerned Chinese companies to be ready with the required information and evidence to be provided to the verification team to establish their MET claim was intimated to them much in advance prior to the verifications. In terms of Anti-dumping Rules, the onus of rebutting the presumption of non-market economy condition lies with the concerned Chinese companies and not with the Authority. The Authority also notes that in the antidumping findings of USA and EU concerning solar cells, the authorities in the respective counties have not granted market economy status to any of the Chinese companies, including the above stated companies. In view of the above stated positions, the Authority treats the above stated Chinese companies as operating under non-market economy conditions. the concerned Chinese companies expressed their inability in writing to provide the required documents during the course of on the spot verification. First Solar Inc, USA

Determination of Normal Value for producers and exporters in USA First Solar Inc, USA The Authority notes that only one producer from USA namely First Solar Inc filed exporterâ&#x20AC;&#x2122;s questionnaire response. M/s. First Solar Inc, USA has provided cost of production and selling price in the USA market to be considered as normal value. M/s First Solar Inc, USA has reported total domestic sales of ***MW of subject goods during POI for the total invoice value of

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US$ ***. During the verification, it was observed that *** KW of the subject goods have been sold by First Solar Inc, USA in the USA market by accounting the transactions through its related party M/s First Solar GmbH Mainz, Germany. First Solar Inc, USA claimed the same transactions as domestic sales arguing that the goods are supplied within USA itself, although the payments were received in free foreign exchange. This fact was pointed out to M/s First Solar Inc, USA in the verification report. In response, M/s First Solar Inc, USA reiterated their earlier position and continued to claim the said supplies as domestic sales. The Authority notes that First Solar Inc, USA has supplied the subject goods locally, but received payment from First Solar GmbH Mainz, Germany in foreign exchange. Moreover, when First Solar Inc, USA has sold subject goods in USA market to other affiliated and non-affiliated parties without accounting through First Solar GmbH Mainz, Germany and received the payment in US$. First Solar, USA has not explained clearly why it was invoicing the goods to USA party through its related party in Germany, even though it was having its invoicing department in USA. This shows that there is some unexplained cause behind such transactions. Therefore, supply of subject goods inside USA and invoicing through First Solar GmbH Mainz, Germany and claiming the same as domestic sale is not acceptable. The Authority notes that First Solar Inc, USA has claimed to have made sales in USA market through three modes i.e. direct sales to affiliated parties in USA, direct sales to unaffiliated parties in USA and sales in USA to affiliated/unaffiliated partiers through its affiliated party in 73 Germany. The practice of invoicing some local sales through a foreign country involving realisation of sale proceeds in foreign exchange cannot be considered as domestic sale for the purpose of determination of normal value. Thus, excluding the sales made by First Solar Inc, USA accounted through First Solar GmbH Mainz, Germany and the sales made by First Solar Inc, USA to First Solar Electric Inc, USA and taking only the sales made to unaffiliated parties in USA, the Authority determines the normal value in respect of First Solar Inc, USA as US$ ***/Watt. Normal value for non-cooperative exporters from USA

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Normal value for noncooperative exporters from USA The Authority notes that no other exporter/producer from USA has responded to the Authority in present investigation. For the noncooperative exporters/producers of the product consideration in USA, the Authority determines the normal value on the basis of best available information. The normal value (NV) determined by the Authority for the non-cooperative exporters/ producers of the product consideration in USA covering Crystalline Solar Cells, Crystalline Solar Modules and Thin Films as US$***/ Watt, US$***/Watt and US$ ***/Watt, respectively. The weighted average normal value of the product under consideration determined on the above basis is US$ ***/ Watt.

First Solar SDN BHD, Malaysia M/s. First Solar SDN BHD, Malaysia has provided cost of production and selling price in Malaysia market to be considered as normal value. Information filed by the company has been verified by the Authority and a verification report was provided to the company. Comments offered by the company and considered relevant by the Authority have also been examined and addressed in this final finding. The Authority notes that First Solar SDN BHD, Malaysia, in addition to their exports through their related party namely First Solar GmbH, Mainz, Germany, has made substantial volume of exports of the subject goods to India during the POI through many parties who have not cooperated in the present investigation. Consequently, the complete value chain of the exports of subject goods by First Solar SDN BHD, Malaysia to India during the POI is absent before the Authority. Consequently, the Authority is not in a position to determine and grant individual margins to First Solar Malaysia. Under the above stated circumstances, determination of normal value concerning First Solar Malaysia is not considered to be relevant. In view of this position, the Authority does not determine individual normal value for M/s. First Solar SDN BHD, Malaysia based on the information provided by the said exporter. Q-Cells Malaysia SDN BHD, Malaysia

Q-Cells Malaysia SDN BHD, Malaysia M/s. Q-Cells Malaysia SDN BHD, Malaysia has provided cost of production and selling price in Malaysia market to be considered as normal value. Q-Cells Malaysia SDN BHD, Malaysia has reported the entire domestic sales of *** KW of subject goods during only one month of the POI for the total invoice value of US$ ***. During the on the spot verification by the Authority, the Company could not demonstrate the authenticity of the costing and financial data in the SAP System claimed to be maintained by the Company. In view of this position, the Authority does not determine individual normal value for M/s. Q-Cells Malaysia SDN BHD, Malaysia based on the information provided by the said exporter.

Normal value for noncooperative exporters from Malaysia The Authority notes that no other exporter/producer from Malaysia has responded to the Authority in present investigation. For all the noncooperative exporters/producers in Malaysia, including the above stated companies, the Authority determines the normal value for Crystalline Solar Cells, Crystalline Solar Modules and Thin Films on the basis of best available information. The normal value (NV) determined by the Authority for the noncooperative exporters/producers of the product consideration in Malaysia covering Crystalline Solar Cells, Crystalline Solar Modules and Thin Films as US$***/ Watt, US$***/Watt and US$ ***/Watt, respectively. The weighted average normal value of the product under consideration determined on the above basis is US$ ***/ Watt. In the EQ response, at Para A.5, with regard to information regarding all subsidiaries or related companies in all countries which are involved with the product concerned, Motech Industries INC declared AE Polysilicon Corporation, USA as the only subsidiary involved in the manufacture of subject goods. But, during the on the spot verification it has come to notice of the Authority that Motech Industries INC has many other related companies in Chinese Taipei and also in other countries namely TSMC Solar, Taiwan, Motech (Suzhou)

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Renewable Energy Co Ltd, China PR, Motech America LLC and Itogumi Motech, Japan which are also involved in the subject goods but not declared by Motech Industries INC in the EQ response filed before the Authority. Further, as per the information available with the Authority M/s Motech (Suzhou) Renewable Energy Co 76 Ltd, China PR, one of the related companies, has made substantial volume of export of subject goods to India during the POI, the details of which has not been declared by Motech Industries INC in the EQ response filed before the Authority, despite China PR being one of the subject countries in the present investigation. The verification report was provided by the Authority to Motech Industries INC, Chinese Taipei for comments. In their comments to the verification report, Motech Industries INC stated that M/s Motech (Suzhou) Renewable Energy Co Ltd, China PR had submitted the sampling questionnaire but not sampled by the Authority. Further, it is acknowledged that solar cells have been sold by Motech Industries INC, Chinese Taipei to M/s Motech (Suzhou) Renewable Energy Co Ltd, China PR for producing modules for sale to other countries and not India. The subject goods exported by M/s Motech (Suzhou) Renewable Energy Co Ltd, China PR are of Chinese origin.

Normal value for non-cooperative exporters from Chinese Taipei value for noncooperative exporters from Chinese Taipei The Authority notes that no other exporter/producer from Chinese Taipei has responded to the Authority in present investigation. For all the noncooperative exporters/producers in Chinese Taipei, the Authority determines the normal value for Crystalline Solar Cells, Crystalline Solar Modules and Thin Films on the basis of best available information. The normal value (NV) determined by the Authority for the non-cooperative exporters/producers of the product consideration in Chinese Taipei covering Crystalline Solar Cells, Crystalline Solar Modules and Thin Films as US$***/Watt, US$***/Watt and US$ ***/Watt, respectively. The weighted average constructed normal value (CNV) determined by the Authority for the product under 54

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consideration is US$***/Watt.

Wuxi Suntech Power Co Ltd, Wuxi, China PR Out of the total reported exports to India during the POI, Wuxi Suntech exported *** pieces (export value USD ***) and *** pcs (export value USD ***) through M/s ***, Singapore and ***, Germany respectively, constituting *** % of the total claimed quantity of export to India during the POI. The Authority notes that M/s *** Singapore and *** Germany have not cooperated and filed exporterâ&#x20AC;&#x2122;s questionnaire response in the present investigation, in the absence of which, the complete value chain in respect of the said channels of export cannot be established. In response to the verification report, Wuxi Suntech submitted that M/s *** Singapore and *** Germany may have no obligation to file EQ response since they are neither exporter in China nor related to Wuxi Suntech. However, the Authority notes once again that unless such exports are brought before the Authority by the concerned exporters, the complete value chain cannot be established. In view of the fact that substantial volume of exports made by Wuxi Suntech through *** Singapore and *** Germany is not before the Authority due to non-cooperation by *** Singapore and *** Germany, the Authority does not grant individual export price to Wuxi Suntech Power Co Ltd, China PR.

JA Solar Technology Yangzhou Co., Ltd, JingAo Solar Co., Ltd, Shanghai JA Solar PV Technology Co., Ltd and Shanghai JA Solar Technology Co., Ltd During on the spot verification, it was observed that being the major exporter, JA Solar Technology Yangzhou Co., Ltd made ***% of the exports of subject goods to three importers namely ***, ***and ***. The Authority notes that the said exports claimed to have been made to these three importers have not been reported in the DGCI&S data relied upon by the Authority in the present investigation. The reasons for the said discrepancy was sought from the concerned exporter during the on the spot verification. The verification report was

provided to the above stated companies for comments. In response to the verification report, JA Solar Technology Yangzhou Co., Ltd informed that being an exporter in China, they cannot provide accurate reasons for any such discrepancy. After considering the response of the concerned Chinese companies, the Authority notes that ***% (*** % of the total exports made by the group) of the exports of the subject goods claimed to have been made by JA Solar Technology Yangzhou Co., Ltd cannot be relied upon since the said transactions have not been found to have been reported in the DGCI&S data. Moreover, despite opportunity given by the Authority, JA Solar Technology Yangzhou Co., Ltd could not justify the above stated discrepancy in the claimed exports. In view of the above position and considering the fact that JA Solar Technology Yangzhou Co., Ltd, JingAo Solar Co., Ltd, Shanghai JA Solar PV Technology Co., Ltd and Shanghai JA Solar Technology Co., Ltd are related companies, the Authority does not grant individual export price to any of these companies.

Canadian Solar Manufacturing (Changhsu) Inc, China PR and Canadian Solar International Ltd, Hong Kong During the on the spot verifications, it was noted that as per the information available with Authority Canadian Solar Manufacturing (Changshu) Inc exported a small quantity of Solar Modules to India directly during the POI. This observation was intimated to the company in the verification report for comments. In response to the verification report, the company has commented that CSAS has not invoiced any goods directly to any entity in India. The said goods were invoiced to a Singapore entity and will therefore not appear as an India sale in the Companyâ&#x20AC;&#x2122;s database. During the POI, Canadian Solar Manufacturing (Changshu) Inc shipped *** Pcs (*** KW) of crystalline solar modules directly to the Indian buyers, but invoiced through Canadian Solar International Ltd, Hong Kong. Canadian Solar Manufacturing (Changshu) Inc made payments to Canadian Solar International Ltd, Hong Kong on lump sum basis at certain intervals and payments

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from the Indian buyers were realized by Canadian Solar International Ltd, Hong Kong. The invoice value of the subject goods to India is US$ ***. The total adjustments of US$ ***were made on account of Inland Freight, Overseas Freight, Insurance Charges, Bank Charges, Cargo Handling Charges and Credit Cost and SGA Expenses of M/S Canadian Solar International Ltd. After making the above adjustments, the Authority determines net export price (NEP) of Canadian Solar Manufacturing (Changshu) Inc for the modules exported through Canadian Solar International Ltd, Hong Kong at US$ ***/Watt.

Canadian Solar Manufacturing (Changhsu) Inc, China PR and Canadian Solar International Ltd, Hong Kong CEEG Nanjing Renewable Energy Co Ltd, Nanjing, China PR is a manufacturer of only crystalline photovoltaic modules. It manufactures crystalline photovoltaic modules by procuring solar cells from their related companies. CEEG Nanjing Renewable Energy Co Ltd exported to India ***KW (*** pcs) of Modules of a gross invoice value of US $ *** during the POI. Out of the total sales to India, *** PCS were exported to India through M/s ***, Singapore and *** pcs were exported to India through M/s ***, Hong Kong, together accounting for about ***%. However, the Authority notes that ***, Singapore and ***, Hong Kong have not filed exporter’s questionnaire response in the present investigation, in the absence of which, the complete value chain in respect of the said channels of export constituting about ***% of the total exports to India made by CEEG Nanjing Renewable Energy Co Ltd, Nanjing, China PR cannot be established. CEEG (Shanghai) Solar Science &Technology Co Ltd, Shanghai, China PR is a manufacturer of only crystalline photovoltaic modules. It manufactures crystalline photovoltaic modules by procuring solar cells from their related company i.e. M/S CEEG (Nanjing) Renewable Energy Company Limited, China PR. During the POI, CEEG (Shanghai) Solar Science &Technology Co Ltd exported *** pcs (KW -) of Modules of a gross invoice value of US $ ***. Out of the total sales of ***pcs, *** pcs

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(*** %) of the total sales were exported through ***, Hong Kong and only ***pcs were exported directly to India. The Authority notes that ***, Hong Kong has not filed exporter’s questionnaire response in the present investigation, in the absence of which, the complete value chain in respect of the said channel of export constituting about *** % of the total exports to India made by CEEG (Shanghai) Solar Science &Technology Co Ltd, Shanghai, China PR cannot be established. The Authority verified the data/ information of the above stated Chinese companies and the verification report was provided to the said companies for their comments. In response to the observations in the verification report, the said companies submitted that the sales made through ***., Hong Kong and ***, Singapore were shipped directly to India by the Company and were duly reported and disclosed under the Appendix-2 filed with the Designated Authority. They further submitted that ***, Hong Kong and *** Singapore are unrelated entities and therefore could not force them to file EQ response. The Authority notes that the above stated related respondent producers/ exporters have made significant exports of the subject goods to India during the POI through ***, Singapore and ***, Hong Kong. However, ***, Singapore and ***, Hong Kong have not filed exporter’s questionnaire response in the present investigation, in the absence of which, the complete value chain in respect of the said channel of export made by China Sunergy (Nanjing) Co Ltd, China PR, CEEG Nanjing Renewable Energy Co Ltd, Nanjing, China PR and CEEG (Shanghai) Solar Science &Technology Co Ltd, Shanghai, China PR cannot be established. In view of the above position, the Authority does not grant individual export price to China Sunergy (Nanjing) Co Ltd, China PR, CEEG Nanjing Renewable Energy Co Ltd, Nanjing, China PR and CEEG (Shanghai) Solar Science &Technology Co Ltd, Shanghai, China PR. The Authority notes that M/s Motech (Suzhou) Renewable Energy Co Ltd, China PR had filed the sampling questionnaire but not sampled by the Authority. In the sampling questionnaire filed by the Company, it was declared that Power Island Ltd is the 100% owner of the Company. But, during on the spot verification of M/s Motech Industries

Inc, Chinese Taipei, a respondent producer/ exporter from Chinese Taipei in the present investigation, it has come to the notice of the Authority that M/s Motech (Suzhou) Renewable Energy Co Ltd, China PR is a subsidiary company of M/s Motech Industries Inc, Chinese Taipei involved in the production of Solar Modules by procuring Solar Cells from M/s Motech Industries Inc, Chinese Taipei and exporting the subject goods to India during the POI. Since the Authority has not granted individual export price to M/s Motech Industries Inc, Chinese Taipei for the reasons well explained in the respective para pertaining to M/s Motech Industries Inc, Chinese Taipei in this final finding, the Authority does not consider M/s Motech (Suzhou) Renewable Energy Co Ltd, China PR as eligible for the export price determined for the non-sampled category of exporters from China PR.

USA Determination of Export Price for Cooperative Exporters in USA The Authority notes that only First Solar Inc, USA filed exporters questionnaire response from USA along with its related exporter namely First Solar, GMBH Germany, whose data/information have been verified by the Authority. As per the responses filed and verified, the Authority notes that M/s First Solar Inc, USA is a producer of thin films and it has exported the said goods to India through its related company namely M/s First Solar GMBH, Germany. M/s First Solar Inc, USA exported a total of ***KW of subject goods (thin film modules) to India during POI through its related company First Solar GmbH – Mainz Germany for a gross CIP value of US $ ***. In all the cases, material was shipped directly to India and invoices routed through First Solar GmbH Mainz – Germany. Out of the total exports to India, an insignificant volume (***KW) was invoiced by First Solar GmbH – Mainz Germany through *** USA, in respect of which exporter’s questionnaire response has not been filed. In view of the above

Q-Cells Malaysia SDN BHD (renamed as Hanwha Q Cells Malaysia SDN BHD) EQ

June-July 2014

The Authority notes that only Q-Cells Malaysia SDN BHD (renamed as Hanwha Q Cells Malaysia SDN BHD) filed the exporter’s questionnaire response from Malaysia whose data/information has been verified by the Authority. The Company produced and

BHDindividual export price in the present

reported by First Solar in its questionnaire

investigation.

response. It is further argued by First Solar that Moser Baer, one of the supporters of the

First Solar Malaysia SDN BHD, Malaysia

exported only crystalline solar cells to India

The Authority notes that M/s First

during the POI. The exports were made to

Solar SDN BHD, Malaysia, along with First

four customers in India during the POI on

Solar, GMBH Mainz Germany filed the

ex-works basis. During the verification it

exporter’s questionnaire response, whose

was observed that the exports of the subject

data/information have been verified by the

goods have been made by Hanwha Q Cells

Authority. As per the response filed and as

Malaysia SDN BHD through its related

verified, the Authority notes that M/s First

German Company namely ***Germany. On

Solar Malaysia is a producer of thin films

being asked to explain the modality of the

which has exported the said goods to India

transactions having taken place through the

through its related company namely M/s First

stated related German Company when the

Solar GMBH, Germany. During the POI the

same fact has not been reported in the EQ

First Solar SDN BHD, Malaysia exported a

response filed by Hanwha Q Cells Malaysia

total of *** KW of the subject goods for a

SDN BHD, it was informed that ***Germany

total CIP value of US $ *** through First

gets the orders from Indian buyers, raises the

Solar, GMBH Germany. In all the cases,

invoices on Indian buyers and gives direction

material is shipped directly to India by First

to Hanwha Q-Cells Malaysia to deliver

Solar Malaysia Sdn Bhd and invoices routed

the goods to the Indian buyers. Further,

through First Solar GmbH – Mainz Germany.

***Germany, after effecting the sales for

Out of the total *** KW exports of subject

and on behalf of Q-Cells Malaysia, collects

goods to India during the POI, produced by

the sales proceeds from the Indian buyers

First Solar SDN BHD, Malaysia, First Solar,

and remits the money to Hanwha Q-Cells

GMBH Germany exported directly to India

Malaysia on a periodic basis after deducting

*** KW (***%) and the balance ***KW

its commission at the rate of ***% as agreed

(***%) was exported through various other

in the agency agreement.

parties in different countries namely, ***,

The verification report was supplied to Hanwha Q Cells Malaysia SDN BHD

Germany (*** KW), ***, Germany (***KW), ***, Germany (*** KW), ***Germany (***

petition in the present case, is related to and has purchased the subject goods from *** and that’s why ***did not cooperate with the Authority in the present investigation.

Chinese Taipei Determination of Export Price for Cooperative Exporters in Chinese Taipei In the EQ response, at Para A.5, with regard to information regarding all subsidiaries or related companies in all countries which are involved with the product concerned, Motech Industries INC declared AE Polysilicon Corporation, USA as the only subsidiary involved in the manufacture of subject goods. But, during the on the spot verification it has come to notice of the Authority that Motech Industries INC has many other related companies in Chinese Taipei and also in other countries namely TSMC Solar, Taiwan, Motech (Suzhou) Renewable Energy Co Ltd, China PR, Motech America LLC and Itogumi Motech, Japan which are also involved in the subject goods but not declared by Motech Industries INC

for comments. In their comments on the verification report, the respondent Company reiterated their position, which was not found to be satisfactory. The Authority notes that the entire shipments have been made by Hanwha Q Cells Malaysia SDN BHD on account of ***Germany. Moreover, payments have also been realised by ***Germany from the Indian buyers. Despite the above nature of transactions, neither Hanwha Q-Cells Malaysia declared the involvement of ***Germany in the export sales channel to India in the exporter’s questionnaire response, nor *** Germany filed exporter’s questionnaire response in the present investigation. In view of the above position,

KW), West ***UAE (***KW), ***, USA (*** KW), ***, Spain (*** KW) and ***, Netherlands (*** KW), in respect of which exporter’s questionnaire response has not been filed by the concerned parties.

in the absence of exporter’s questionnaire

This fact was brought to the notice of

response of ***Germany, the complete value

First Solar in the exporter’s verification

chain in respect of the claimed exports to

report. In response to the verification report,

India during the POI cannot be established.

it is argued by First Solar that the values &

In view of the above position, the Authority

consequent price in most of these transactions

does not grant Hanwha Q Cells Malaysia SDN

are higher than the values & consequent price

EQ June-July 2014

in the EQ response filed before the Authority. Further, as per the information available with the Authority M/s Motech (Suzhou) Renewable Energy Co Ltd, China PR, one of the related companies, has made substantial volume of export of subject goods to India during the POI, the details of which has not been declared by Motech Industries INC in the EQ response filed before the Authority, despite China PR being one of the subject countries in the present investigation.

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importers/other interested parties The following are the injury related submissions made by the producers/exporters/ importers/other interested parties: Injury analysis is based on the injury data of only 12% of the total production of the PUC in India and the same cannot be considered as representative of domestic industry. There is a huge gap between the capacity and demand. Domestic module producers working at 100% capacity utilization would only fulfil 13% of the total demand. Indian demand is being met by imports, as the Indian industry was created and focused itself on exports.

DUMPING MARGIN All other exporters from China PR Dumping margin for all other noncooperating exporters from China PR has

determined by the Authority with regard to Malaysia as per the table below:

Dumping Margin in case of Chinese Taipei

The domestic industry has not suffered injury due to imports into India. Performance of the domestic industry has materially improved as far as domestic market is concerned. The reasons for significant price decline are significant decline in the cost of basic input, silicon wafer. The cost of production of the domestic industry has increased due to incidence of fixed costs due to collapse of exports of the domestic industry. Domestic Industry has created significant excess capacity considering export markets, which collapsed. Petitioners have invested too heavily in the product under consideration which are not only disproportionately higher as compared to capacity additions but also were intended for exports.

been determined by the Authority on the basis of best available facts as given in the

table below:

J. Methodology For Injury Determination

And Examination Of Injury And Causal Link

Dumping Margin in case of Malaysia

Injury Examination

Comparing the normal value and export prices as determined in the preceding paragraphs, the dumping margin has been

Submissions made by the producers/exporters/

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A determination of injury shall involve an objective examination of both (a) the volume of the dumped imports and the effect of the dumped imports on prices in the domestic market for like article and (b) the consequent impact of these imports on domestic producers of such products. The Designated Authority is required to determine both. The domestic industry had capacity utilization of 88.61% in 2008-09, which implies that the domestic industry could have produced 410.26 MW during period of investigation. As against this, the domestic industry produced only 26.03 MW. Thus, the domestic industry was faced with exorbitant fixed cost, high depreciation, high interest cost during this period which had to be absorbed on the production of 26.03 MW only. Thus, petitioners have suffered very

June-July 2014

heavy high fixed cost during this period which is the sole cause of decline in profitability. The petitioners have claimed steep decline in profits despite significant decline in raw material cost which clearly establishes that decline in profits is due to steep increase in the fixed cost as a result of collapse of export market. For determining injury margin, Authority is required to determine non injurious price for thin film. However, the Designated Authority cannot determine non injurious price for thin film for the reason that there is no producer of thin film who is part of petitioners. Thus, possibility of thin film substituting crystalline products, in any case, cannot be a ground for including thin film products within the scope of the product under consideration. Cost of production of Moser Baer for thin film could not have been an appropriate benchmark for the reason that Moser Baer itself has found its production facilities insufficient/inappropriate/incompetitive and instead of production, the company has resorted to significant imports. Imports price from subject countries and non-subject countries are at comparable level. Thus, if the petitioners contend that these imports are at dumped prices, they have proceeded on a discriminatory basis in violation of Rule 19. Further, if petitioners maintain that these imports are undumped imports, this directly attracts the provisions of causal link. Either way, the petition is not maintainable in its present form. It would be seen that depreciation cost of the two companies increased from Rs.267 lacs to 5417 lacs i.e. about twenty times, whereas interest cost increased from 960 lacs to 9100 lacs, i.e., about ten times. The disproportionate increase in depreciation & interest cost is because of collapse of export market. Even though petitioners have stated that they have segregated injury because of exports, it seems the same has been done only in respect of profits and not in respect of other parameters such as production, capacity utilization, sales volumes, etc. and also not done for apportionment of expense between domestic and exports. The depreciation and interest cost must be charged to domestic production for the purpose of determining domestic profit in the ratio of capacity. Further, on the same lines, conversion and all other fixed costs of the company must

EQ June-July 2014

be charged onto the domestic production in the ratio of capacity. Since petitioner domestic industry has not even produced the product under consideration during the relevant period despite enhancement of capacities to the extent it has produced in the past, such high fixed cost cannot be charged to the domestic production for the purpose of determining domestic profit under Annexure-II. Since collapse of export market is clearly a different factor and since this injury cannot be charged to the domestic market for the purpose of determining profit under Annexure-II, the DA should normate the fixed cost and thereafter determine profits. The analysis of import and determination of volume and value of import is full of serious errors. There are hundreds of transactions where the assessment of imports volume is flawed. If import volumes are rectified in all these transactions, the emerging position shall be entirely different than what claimed by the petitioners. The imports from non-subject countries increased significantly in period of investigations as compared to preceding year. It would, therefore, be inappropriate to discriminatorily proceed against imports from subject countries and ignore imports from non-subject countries. Domestic industry is selling the product at a price materially below the landed price of imports. Such being the case, the domestic industry cannot claim that imports have adversely impacted the domestic industry. It is submitted that the level of cooperation from USA is 100% in this investigation. Therefore, the Designated Authority is required to consider the weighted average export price of co-operating exporters for the purpose of examination of price effect of the alleged dumped imports on the domestic industry. Petitioners have reported significant increase in per unit costs during period of investigation. There is no justification for such a massive increase in the cost of sale during POI particularly because there is no 97 material increase in the prices of various materials/inputs consumed in the production of the product concerned. The domestic industry has resorted to massive capacity expansion over the period. It is obvious that such robust capacity expansion

could not be commercialised immediately. Further, it also shows that the capacity expansion have been made without adequate consideration to the market situation. It would be seen that these capacity additions were not made keeping in mind the domestic demands. These were made keeping in mind the export demands. However, unfortunately for the petitioners, the market for product under consideration has not done well in the global market and the global situation is faced with severe economic recession, thus leading to collapse of performance of the domestic industry. The petitioners have completely withheld a vital fact from the Designated Authority that the silicon wafer prices have very dramatically declined over the injury period, which is the primary cause of the decline in the prices of c-Si PV products. Thin Film and c-Si PV do not and cannot compete with each other. These are alternatives and not like articles. The developerâ&#x20AC;&#x2122;s decision on Thin Film or c-SI PV or even others totally depends on overall project cost and profitability of the developers. It would, therefore, be inappropriate to compare Thin Film price with c-SI PV price. The increase in depreciation is extremely high as compared to the increase in capacity, production and Gross Fixed Assets. Evidently, the depreciation charged to the product under consideration for domestic 98 market does not in fact pertain to domestic operations thus leading to an excessive high cost of production and resultantly lower profits in the product under consideration. Non-utilization of investments is because of adverse performance in exports and not due to domestic performance. Production of petitioners significantly declined in this period from 157 MW in 2007-08 to 81 MW in first twelve months and 10 MW in later six months of POI. Profit before tax steeply declined despite the fact that sales volumes doubled between first twelve months and later six months. This clearly shows adverse effect of large fixed cost that are being incurred by the petitioners because of their exports orientation and total collapse of export markets. Interest shows whopping increase in eighteen months as compared to twelve months which implies significant increase in

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interest cost in later six months as compared to first twelve months of the proposed period of investigations. Profit before interest and tax shows a position similar to profit before tax. In fact, data shows far higher deterioration in profit before interest as compared to profit before tax because of whopping increase in interest cost. Depreciation trend shows a position similar to that of interest. There is whopping increase in depreciation in six months despite three times increase in the domestic production and domestic sales. Productivity of the domestic industry has very steeply declined in period of investigation and the same may not be attributed to alleged dumped imports. Market share of domestic industry shows a robust increase in six months. The segmented assets of Indosolar are segregated purely on geographical basis and its asset base in India should not be construed to be solely for domestic operations. Both Indosolar and Websol are having 100 very high interest and depreciation cost due to their high capital investments and borrowing, mainly for catering to export markets, thereby breaking the causal link. The lower quality of cells and modules offered by the Indian producers is a direct result of the Petitioners being unable to employ the new technological changes in the world. Thus the alleged dumping and injury have no causal link. The injury analysis provided by the Applicants is inconsistent with their own claims of dumping. At one instance, the Applicants have done a product to product comparison of dumping. On the other hand, the injury analysis appears to be presented for the entire product under consideration as one. Such an analysis pre-supposes interchangeability between cells, modules and thin films. This is bound to create an unbalanced and untenable injury analyses. Most of the solar cell and module manufacturers of India do not provide antireflective coating to protect against Potential Induced Degradation (PID) i.e. loss of system power caused by leakage of current at high voltage and at high temperatures. While most of the imported modules come with 25 years warranty supported by insurance policy, the Indian industries do not

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provide any such facility. Not all the domestic producers manufacturing modules, and, so injury should be seen separately for cells and modules. There is no causal link between alleged dumping and injury. Domestic Industry has erroneously attributed injury caused by other factors (as also admitted in their Annual reports) to dumping.

Submissions made by the domestic industry Cumulative assessment of the effect of imports is appropriate since the subject goods are like articles and are competing in the same market; the imported products are being sold through the comparable channel of distribution and to comparable category of customers; products from the subject countries are undercutting the prices of the domestic industry in the market and imports from subject countries are increasing. Though the demand has increased significantly during POI as compared to base year, the market share of domestic industry went up only nominally which evidently shows that the domestic industry has been crowded out by such huge dumped imports. Entire increase in demand was absorbed by dumped imports putting the domestic industry in an absolute adverse situation. Imports from subject countries increased in absolute term as also in relation to total imports, production and consumption in India. Imports from subject countries constituted almost 87% of the total Indian demand. During POI, the price undercutting was significant. Further the decline in selling price was higher than such decline in cost of production that the domestic industry remained in financial losses. This shows there is price depression as well. Domestic industry has suffered material injury as well as threatened with continued injury. The production and capacity utilization of the domestic industry have declined both in absolute and relative term in the POI. Production and sales of the domestic industry that should have increased with the pace of increase in demand of product in India have on the contrary shown a significant decline in POI. Almost 80% of its capacity is lying idle despite increasing demand.

Performance of the domestic industry has declined over the years as a result of increase in dumped imports from subject countries. Dumping is causing huge financial losses to the domestic producers and the domestic industry is unable to pass on even the cost of sales to the customers leave aside any profit. Market share of the domestic industry has severely declined or never materialized whereas that of imports from subject countries has materially increased and in a way dominated the Indian market leaving no space for the Indian producers. Solar Cell industry has the potential to provide large number of employment to skilled, semi-skilled and unskilled class of labor. The 102 ability of the industry to provide more employment did not materialize as the domestic industry was almost wiped out from the market. The installed capacity of applicant domestic industry is about 308 MW. In a scenario of increasing demand for the PUC, the domestic industry should have achieved a significant market share and operated at 100% capacity utilization. On the contrary the domestic industry has only been able to operate its plant at 20% capacity utilization (POI) mainly due to low priced dumped imports from subject countries. The domestic producers as a whole have invested more than Rs. 10,000 Crores in fixed assets alone which are likely to become a sunken investment if the corrective actions to address dumping are not initiated immediately. There is significant difference between the prices offered by the domestic industry and foreign producers. Resultantly, domestic industry lost sales volumes. Thus, decline in sales volumes is a direct consequence of dumped imports from subject country. The capacity of the domestic industry which was 10 MW in the base year has been increased to 308 MW in the POI where as the demand which was 130 MW in the base year increased to almost 931 MW. So, any enhancement in the capacity was targeting the growing Indian demand and the factor which requires a special mention here is that the imports from subject countries which were 28MW in the base year increased to 801 MW in the POI. Thus, it canâ&#x20AC;&#x2122;t be said that the increase in capacity by the petitioner was not in tandem with the increase in domestic demand.

June-July 2014

Examination by the Authority Article 3.1 of the WTO Agreement and Annexure-II of the AD Rules provide for an objective examination of both, (a) the volume of dumped imports and the effect of the dumped imports on prices, in the domestic market, for the like products; and (b) the consequent impact of these imports on domestic producers of such products. With regard to the volume effect of the dumped imports, the Authority is required to examine

the POI, the Authority notes that the price undercutting has been done on monthly basis

compared to the price of the like product in India, or whether the effect of such imports is otherwise to depress the prices to a significant degree, or prevent price increases,

Volume Effect of the Dumped imports on the Domestic Industry

Demand and market share Demand Market Share in Demand whether there has been a significant increase in dumped imports, either in absolute term

which would have otherwise occurred to a significant degree.

Import volume and market share Imports volume from subject country and other countries are as under:Authority observes that the imports from subject countries have increased in relation

or relative to production or consumption in India. With regard to the price effect of the dumped imports, the Authority is required to examine whether there has been significant price undercutting by the dumped imports as

As regards the submission that a monthwise analysis is required in the present investigation due to significant fluctuation in the prices of major inputs

and the finished products during 60

EQ June-July 2014

to the production of the domestic industry, as is evident from the following table:

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Production Production data of the domestic industry is given in the following table:It is observed that the production of the domestic industry has increased from

countries are causing underselling effects on the prices of domestic industry.

Price

suppression/ depression The Authority examined whether the dumped imports are depressing the prices of the like article in 6.08% in 2008-09 to 64.25% in 2010-11 and thereafter declined to 6.32% in the POI.

Sales volume Sales volume of the domestic industry is given in the following table: It is observed from the above table that market share of the domestic industry has showed increasing trend between 2008-09 and 2010-11 and declined thereafter in the POI though the demand for the product has been increasing significantly during the injury period. It is noted that in 2010-11, the production of the domestic industry had

the domestic industry in the period 2009-10 and 2010-11 keeping pace with increase in

demand. However, capacity utilization of the domestic industry over the injury period has declined despite increase in demand, in the face of increase in imports from the subject countries. 134. The profitability of the domestic industry is given in the following table: It is seen from the

India, or preventing price increases which would have otherwise occurred. The details are given in the table below:

Economic parameters of the domestic industry

above table that profitability of the domestic industry declined significantly during the injury period.

Cash Flow reached the peak level of 64.25% of the demand.

It is seen that the cash profits of the domestic industry declined over the injury period and were in cash losses.

Price Undercutting It is observed from the above table that imports are undercutting prices of domestic industry. Undercutting is found to be significant and positive in the case of subject countries.

Capacity & capacity utilization

Inventories The Inventory position of the domestic industry is as follows: It is noted that inventories with the domestic industry increased in the POI as compared to the base year as well as the

Price Underselling It is observed from the above table that imports of subject goods from the subject As noted from the table below, there is an enhancement of capacity of

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previous year.

June-July 2014

Productivity Authority notes that productivity of the domestic industry shows same trend as that of production. Productivity was increasing till 2010-11 and declined in POI.

Employment and Wages It is seen from the table below that the employment level has increased throughout the injury period.

Growth The Authority notes from the table below that growth of the domestic industry in respect of production, capacity utilization, price and profit and ROI was negative.

Ability to raise capital investment It is noted that the domestic industry’s ability to rope in any additional investments in the product depends upon the market situation. As it is evident, the market share of the domestic industry is yet to reach any considerable levels.

Conclusion on material injury After examining and analysing the facts and figures concerning injury to the domestic industry, the Authority concludes that the dumped imports of the subject goods from the subject countries have increased in absolute terms as also in relation to production and consumption of the subject goods in India. It is further noted that imports of the product from subject countries were undercutting the prices of the domestic industry in the market. Even though cost of production decreased over the injury period, decline in selling price were higher than decline in cost of production. The imports were thus suppressing/depressing the prices of the domestic industry and preventing the price increase that would have otherwise occurred in the absence of dumped imports. With regard to consequent impact of the dumped imports on the domestic industry, it is noted that demand for the subject goods in the domestic market increased very significantly, whereas production and sales of the domestic industry remained at the minimal level and more or less stagnant in the face of dominant presence of the dumped imports from the subject countries. 62

EQ June-July 2014

Trade restrictive practices of and competition between the foreign and domestic producers The Authority notes that the imports of the subject goods in India are freely importable. As regards competition between domestic and foreign producers, the Authority notes that the imported subject goods and domestically produced goods are like articles and are used for similar applications/end uses and are competing in the same market. Further, the Authority notes that imposition of anti-dumping duties by EU and USA on the imports of subject goods from China PR, may result in intensification of Chinese dumping in the Indian market, considering growing demand factor in the Indian market. On the basis of information provided by MNRE, the estimated volume of cell/module production capacity in India and the global capacity/demand is as follows: a) Installation of solar projects in India – so far to the tune of 1700 MW. b) India’s current estimated capacity to

produce cells – 1039 MW, Modules (including thin film) about 1937 MW. c) Estimated global capacity- 60000 MW d) Estimated global production – 40,000 MW.

consumption The Authority notes that demand for the product showed significant increase during

the injury period including the POI. Thus, the Authority that injury to the domestic industry was not due to contraction in demand. (d) Development in Technology 148. None of the interested parties have furnished any evidence of any change in technology of production of the subject goods which can be construes as cause of injury to the domestic

industry.

Export performance of Domestic Industry; The details of exports by the petitioner are as follows; The Authority notes that the export performance of domestic industry has improved during the injury period and declined during the POI. However, in the injury analysis, the performance of the domestic industry has been segregated by the Authority for domestic and export markets. The segregated data has established injury to the domestic industry on account of dumped imports. Although during the POI there is a decline in exports, the domestic industry

e) Estimated global demand 25,000 MW. 120

Contraction of demand or Changes in the pattern of

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could not take advantage of increased demand in India by improving its domestic market share due to dumped imports.

China PR Sampled Respondent

Comments

subject countries.

The following are the post-disclosure

Despite the situation as per the DGCI&S

submissions/comments made by the opposing

data, exclusion of the EU as a subject country

interested parties and considered relevant

in the present investigation constitutes a

by the Authority:

violation of the legal provisions. Authority

The time granted by the Authority for disclosure comments is inadequate. The petition on the basis of which the present investigation

Cooperative Exporters from China PR

has been initiated does not have accurate and adequate evidence to justify initiation. Designated Authority should terminate the investigation on the ground of

All other exporters from China PR

de-minimus dumping margin which may arise after establishing accurate and adequate evidences. Once DA comes to a conclusion that dumping margin in respect of thin film is de-minimus, dumping margin in respect of

154. Injury margin for all other noncooperating exporters from China PR has been determined by the Authority on the basis of best available facts as given in the table below:

USA Injury Margin in case of USA Considering the Non Injurious Price and landed value determined above, the injury margin for the producers/exporters from USA is determined as follows:

Injury margin in case of Malaysia Considering the Non Injurious Price and landed value determined above, the injury margin for the producers/exporters from Malaysia is determined as follows:

imports of thin film from USA and resultantly volume of dumped imports from USA become de-minimus, there is no surviving claim of dumping beyond de-minimus before the Designated Authority.

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completely different data set towards the end of the investigation with no reasoned explanation is not justified. The Indian Renewable Energy sector is a growing industry and the Solar Energy sector is potentially one of the largest sources of renewable energy for India in the foreseeable future. The developments of Solar Energy and related power projects in India is encumbered by the backward technology of the Indian producers which results in lower quality products being utilised for solar projects. The cost of solar power production will increase by at least Rs 1.6 crore per mw if anti-dumping duty is imposed on the subject imports. Project under development should be exempted from anti dumping duty. Cells/modules and thin films are not like articles and therefore not substitutable. Thin film and CSPV are alternate articles but not like articles. Antidumping Rules

that import of the PUC from the European

however recognize like articles and not

Union during the POI was priced much higher

alternate articles. Therefore separate injury

as compared to the import of the PUC from

and causality examination should have been

the subject countries and therefore there is

done for each of the products. Further, the

no case of causing injury to the DI due to

imposition of anti-dumping duties only on

import of the PUC from the European Union.

crystalline products would not lead to a shift

However this conclusion is erroneous as the

to thin film products.

DI itself has presently filed a petition before the DA alleging dumping and subsequently material injury due to import of the PCU from the European Union. Authority has acknowledged the fact that imports of the subject goods from non-subject countries have been insignificant, with the exception of the EU. Failure to include the EU as a subject country fails the causal link as well. imports from EU are not causing injury because the import price from EU is higher than the import price from subject countries. However, any price comparison must be done separately for cells, modules and thin film,

Post Disclosure

of the Impex Statistics data, shifting to a

The disclosure statement has observed

Petitioners have now contended that Considering the Non Injurious Price and landed value determined above, the injury margin for the producers/exporters from Chinese Taipei is determined as follows;

had initiated the investigation on the basis

which would show that the import price from EU were lower than the import price from

As the domestic industry does not produce thin film products, imports of thin film products cannot be causing injury to a domestic industry that produces only crystalline products. US Authorities have clearly held that thin film and crystalline modules constitute dislike articles. Report of Australian Anti-dumping Commission in the matter of anti-dumping investigations concerning imports of Certain Crystalline Silicon Photovoltaic Modules or Panels exported from the Peopleâ&#x20AC;&#x2122;s Republic of China has considered cells and thin film products as dislike article to Crystalline Silicon Photovoltaic Modules or Panels. Applicants do not fulfill the requirement

June-July 2014

of domestic industry under the AD Rules. Moreover, Injury data does not cover major proportion of the domestic industry. The injury determination in the present investigation has been conducted based on the injury data of domestic producers that constitute only 12% of total domestic production. Injury analysis conducted must include information for the domestic producers and not the domestic industry. Rule 5(3) in clear terms provides that petition must be supported by at least those domestic producers whose collective shipment constitutes at least 25% of Indian production. In the instant case, the petitioner’s production constituted only 11.62% of Indian production and therefore the conditions specified under the law are not met. Automatic exclusion of those domestic producers from the scope of “domestic industry” who may have imported the subject goods during the POI has led the Authority to conclude wrongly that the Applicant accounts for “a major proportion” of the total production of the product under consideration in India. Indosolar Ltd, one of the petitioners has themselves imported the subject goods as per the import information available. Applicants do not fulfill the requirement of domestic industry under the Indian AD Rules as most of them are either SEZ units or 100% EOUs and do not have major proportion of Indian production of subject goods. Further, the sole producer of thin film in India has produced thin film of a very small quantum during period of investigation. Since an anti-dumping duty would be attracted if an SEZ unit sells the subject goods in the Domestic Tariff Area (DTA), the SEZ unit ought not to have been considered as part of the domestic industry. The cost of production and price of thin film are lower than cost of production of crystalline. Such being the case, it is highly erroneous to apply crystalline modules normal value (and NIP) to thin film. A significant dip in the prices of major inputs as well as the PUC on a month-wise basis over the POI requires month-wise injury analysis. The domestic industry is selling the product at a price materially below the landed price of imports. Thus, alleged injury 64

EQ June-July 2014

is unfounded. The domestic industry has added almost thirty times capacity over the injury period when the global market was suffering from recession. It is natural that this exploding capacity addition is one of the principal causes of injury to the domestic industry. Domestic Industry has created significant excess capacity considering export markets, which collapsed. However the disclosure statement failed to address such issues. The decline in production, sales as well as capacity utilisation is clearly because of decline in exports. While domestic sales have increased in the POI, export sales have declined. Thus, the decline in production and consequently capacity utilization and decline in sales is entirely because of decline in exports of the domestic industry. The Designated Authority has not provided any reasons or justification to allow 22% return on capital employed to the domestic industry and has arbitrarily and unfairly accorded such an inexplicably high return to the domestic industry. The stand taken by Authority that Q-Cells Malaysia SDN BHD (QCMY) could not demonstrate the authenticity of costing and financial data is erroneous and unreasonable. Authority should revise its decision and determine individual normal value for Q-Cells Malaysia SDN BHD and issue a revised Disclosure statement to enable to comment further on the ‘Dumping margin’ if any, determined for QCMY based on their data. It was mentioned in the EQR that Q-Cells Malaysia SDN BHD (QCMY) took assistance of *** Germany (***) for effecting sales during the POI wherein *** acted as facilitator and charged a fee for the assistance rendered. *** plays its role as an agent only to the extent of providing facilitation services which includes realization of sales proceeds from the buyers. Given the fact that *** role has been limited primarily to facilitation on behalf of the principal – QCMY, there is no reason why *** should have filed the EQR in the capacity of an agent. In the light of the above facts, we urge the Hon’ble Authority to grant individual export price for QCMY and issue a revised Disclosure statement to enable us to comment further on the ‘Dumping margin’ if any, determined for QCMY based on their data. Hanwha SolarOne (Qidong) Co. Ltd.,

China (HSOL) should not be subjected to a dumping margin that has been determined, inter alia, based on the NME criteria due to rejection of the information/data of the sampled producers from China, primarily for the reason that HSOL had claimed market economy treatment (MET) as not only is it a foreign-equity owned company but also has not indulged in dumping practices. Authority determines an individual dumping margin for Hanwha SolarOne (Qidong) Co. Ltd., China (HSOL), based on its questionnaire response. Sales made by First Solar Inc, USA to the parties in USA through a related party in Germany should be considered as domestic sales and accordingly considered for the purpose of determining normal value as the goods have not left territorial waters of USA. Mere invoicing of goods by First Solar Inc to its related company in Germany, First Solar GmbH does not make such sales as exports. First Solar Malaysia is a known, cooperative producer/ exporter, whose questionnaire response has been verified and First Solar is therefore entitled to individual dumping margin. The Designated Authority never considered the questionnaire responses from unaffiliated purchasers of First Solar Malaysia as mandatory requirement. After having accepted the questionnaire response of First Solar Malaysia and conducted on the spot verification at the premises of First Solar Malaysia, it is grossly inappropriate to reject the entire questionnaire response on the plea that the shippers have not filed questionnaire response. Inability to determine export price for First Solar Malaysia on the basis of questionnaire response is grossly insufficient ground for not determining normal value on the basis of questionnaire response of First Solar Malaysia. The disclosure statement failed to appreciate that normal value and export price are two distinct elements for determination of dumping margin and even if one of the elements is missing the other one is required to be accepted. The decision of the Designated Authority to reject the questionnaire response of First Solar, Malaysia is directly in contravention of the meaning of cooperation under Rule 6(8) and as interpreted by the WTO Dispute Settlement Body of in the matter of United States-Anti-Dumping and Countervailing

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Measures on Steel Plate from India WT/ DS206/R. The disclosure statement has ignored its own proposed determination in respect of First Solar Inc. USA where the export price and dumping margin have been determined based on questionnaire response despite the fact that one of the customers to whom First Solar had invoiced the goods was outside India. The exports made by JA Solar group companies to India during the POI to the three companies as mentioned in the Disclosure Statement are SEZ units and therefore imports by these units are not reported in the DG (System)/DGCI &S data. The DGAD should satisfy itself about the authenticity and accuracy of the data from DGCI&S before disregarding the information of a sincerely participating exporter whose data has been duly verified by the team of officers. Motech has filed true and complete information regarding its exportation of the subject goods during the POI with DGAD. Motech had no intention to deliberately mislead the Designated Authority. An inadvertent omission regarding related parties involved in the subject goods cannot be considered as a ground for rejection of the entire response. It was mentioned in the EQR that Q-Cells Malaysia SDN BHD (QCMY) took assistance of *** Germany (***) for effecting sales during the POI wherein ***acted as facilitator and charged a fee the assistance rendered. Further, the stand taken by Authority that Q-Cells Malaysia SDN BHD (QCMY) could not demonstrate the authenticity of costing and financial data is erroneous and unreasonable. Authority should determine individual dumping margin for QCMY based on their data after issuing a revised disclosure statement. Hanwha Solar One (Qidong) Co. Ltd., China (HSOL) is a foreign-equity owned company and not indulged in dumping practices. Their EQ Response should not be rejected on NME criteria due to rejection of the information/data of their related party namely Q-Cells Malaysia SDN BHD. The mere fact that some part of the information is missing does not authorize an investigating authority to reject the entire

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information of First Solar. WTO Appellate Body in the matter of United States – AntiDumping Measures On Certain Hot-Rolled Steel Products from Japan, upheld Panel decision that facts available could be applied only if the investigating authority concludes that the party has not acted to the best of its abilities. None of the companies to whom First Solar has sold the module are in any way related to First Solar. Therefore, it is not possible for First Solar to force these companies to cooperate with the Designated Authority. The exporters belonging to China Sunergy group are liable to receive individual treatment on the basis of the direct exports to India which have been duly verified and the denial of individual treatment is erroneous. The established practice of the Designated Authority has always been to allot one weighted average duty quantum for all related producers in one subject country. The Exporters being related parties are entitled to a Group wise margin based on the established practice and precedents followed by the Designated Authority. Wuxi Suntech Power co. Ltd. , China Sunergy (Nanjing) Co. Ltd.- data should not be rejected as the exporter are non related entities as unrelated parties are not under the control of these companies. The following are the post-disclosure submissions made by the domestic industry and considered relevant by the Authority: The submission of the opposing interested parties that supplies from EOU/ SEZ units should not be treated as domestic sales, the Authority may note that the Hon’ble Allahabad High Court in the matter of M/s India Exports Vs. State of U.P. & Ors [Civil Misc. Writ Petition No.1488 of 2009] observed that “The arguments that since SEZ is deemed to be outside the customs territory of India, the sale from SEZ to DTA has to be treated as import, is not born out from the provisions of either SEZ Act, 2005 or Central Sales Tax Act, 1956”. Individual margin to First Solar Inc, USA also needs to be rejected as determination of dumping margin is exporter or producer specific and denial of individual margin to First Solar Malaysia should automatically lead to a denial of individual margin to First Solar USA as well. Non denial of individual margin to First Solar USA will lead to undue

advantages to First Solar as a whole for the reason exports of subject goods henceforth would be undertaken by the route which has got an individual margin. The Authority notes that the postdisclosure comments/submission made by the interested parties is mostly reiterations and already examined suitably and adequately addressed in the relevant paras of this finding. However, the post-disclosure comments/ submissions made by the interested parties and considered relevant by the Authority are examined as below: As regards the submission that the time granted by the Authority for disclosure comments is inadequate, the Authority notes that the anti-dumping investigations are time bound and reasonable time has been granted to the interested parties for furnishing comments on the disclosure statement. The Authority further notes that despite the limited time available with the Authority, the request of the interested parties for an extension of time was also considered to the extent possible. As regards the submission that the petition on the basis of which the present investigation has been initiated does not have accurate and adequate evidence to justify initiation and the investigation should be terminated simply on the ground of de-minimus dumping margin especially in respect of thin film imports from USA, the Authority notes that First Solar Inc is the only cooperative producer of thin films from USA which has cooperated along with its related party in Germany with regard to its exports of thin films to India during the POI. While the prima facie information provided by the petitioner were considered relevant for the purpose of initiation, the actual position of dumping has been determined on the basis of verified data in respect of the above stated producer/exporter. The details of magnitude of dumping are elaborated in the relevant paras of this finding, which is self explanatory. The opposing interested parties have submitted that the observations made in the disclosure statement that import of the PUC from the European Union during the POI was priced much higher as compared to the import of the PUC from the subject countries and therefore there is no case of causing injury to the DI due to import of the PUC

June-July 2014

from the European Union is erroneous. The Authority notes that the above observation was based on the supplementary information submitted by the domestic industry based on an analysis of the import data sourced from the DGCI&S. Further, the same data was placed in the public file for perusal and analysis by the other interested parties. As per the said data, the imports of the subject goods from EU in terms of volume is above de minimis level, but price-wise much above the prices of the subject countries. Therefore, the imports of subject goods from EU could not have affected the situation of the domestic industry to the extent to break the causal link between the dumped imports from the subject countries and the material injury suffered by the domestic industry. Further, with regard to the argument that any price comparison must be done separately for cells, modules and thin film which would show that the import price from EU were lower than the import price from subject countries, the Authority notes that such separate analysis also show that the import prices of EU for cells, modules and thin films were higher than the respective import prices from the subject countries. As regards the submission that Authority had initiated the investigation on the basis of the Impex Statistics data and shifting to a completely different data later during the course of the investigation is not justified, the Authority notes that the Antidumping Rules do not prohibit the Authority from relying upon the best available information at any stage of the investigation. Moreover, transaction-wise import information from the DGCI&S, which is primary source of information, has been relied upon by the Authority in several investigations. As regards the submission that the projects under development should be exempted from anti dumping duty, the Authority notes that the purview and mandate of the present investigation does not cover such aspects. As regards the contention that the cost of solar power production will increase if anti-dumping duty is imposed on the imports of subject goods, the Authority notes that the basic objective of anti dumping investigations are to establish the facts of alleged dumping and injury to the domestic industry on account of dumping and to recommend suitable

EQ June-July 2014

and adequate anti dumping measures for imposition by the central government to neutralize the injurious effect of dumping and to create a level playing field for the domestic industry vis-a-vis dumped imports. Anti-dumping measures neither restrict nor prevent imports. The consumers, who may be benefitting out of dumped prices, may have to buy the subject goods at fair prices after imposition of the anti-dumping duty. As regards the contention that the domestic industry does not produce thin films and therefore same should be excluded from the purview of the PUC and anti dumping Authorities in other countries have held that thin film and crystalline modules are not like articles, the Authority notes that the issue has been adequately examined and addressed in the relevant paras of this finding. The Authority notes once again that solar cells made of thin film technology and crystalline technology is technically and commercially substitutable and is like articles within the meaning and scope of Rule 2(d) of the Antidumping Rules. The Authority also notes that since it is established that thin films are like article and substitutable to the crystalline module produced by the domestic industry, the question of non-production of thin films by the domestic industry is irrelevant As regards the contention that Indosolar Ltd, one of the petitioners, has themselves imported the subject goods and therefore not eligible to considered as domestic industry, the Authority notes from the information provided by the concerned interested party itself that goods involved in the transactions are basically export returns wherein the country of origin has been shown as India. As regards the contention that the cost of production and price of thin film are lower than cost of production of crystalline modules and it is highly erroneous to apply crystalline modules normal value (and NIP) to thin film, the Authority notes that crystalline and thin film modules are like articles. Moreover, the landed price of imports shows that the consumers were getting the material at comparable prices indicating the price difference between crystalline modules and thin films is not significant. As regards the contention that the domestic industry is selling the product at a price materially below the landed price of imports, the Authority notes that the price

undercutting determined for the subject countries was positive and the domestic industry suffered significant price injury during the POI. As regards the contention that the domestic industry has added almost thirty times capacity over the injury period when the global market was suffering from recession, the Authority notes that the demand for the PUC has also increased significantly during the injury period i.e. from 145833 KW in 2008-09 to 944820 KW in annualized POI. The Authority further notes that if there were no dumped imports, the domestic industry could have improved its market share. As regards the contention that the Designated Authority has not provided any reasons or justification to allow 22% return on capital employed to the domestic industry, the Authority notes that it has provided 22% return on capital employed as per its consistent practice. As regards the contention by Q-Cells Malaysia SDN BHD (QCMY) that Authority should revise its decision and determine individual margin for it, the Authority notes that this issue has been adequately examined and addressed in the relevant paras of this finding. The Authority notes once again that during the on the spot verification, QCMY failed to demonstrate the authenticity of the costing and financial data in the SAP System claimed to be maintained by the Company. Further, in the absence of exporterâ&#x20AC;&#x2122;s questionnaire response filed by its related party in Germany, the complete value chain in respect of the claimed exports to India during the POI cannot be established. Under the above circumstances, the Authority is not in a position to satisfy itself about the accuracy and adequacy of the information furnished by QCMY. In view of the above position, the Authority does not grant Hanwha Q Cells Malaysia SDN BHD individual margin in the present investigation. As regards the submission by Hanwha SolarOne (Qidong) Co. Ltd., China (HSOL) for individual margin, the Authority notes that the said Chinese company falls under the non-sampled category and the margin has been determined accordingly. First Solar Malaysia has argued that if some part of the information is missing, it does not authorize an investigating authority from rejecting the entire information. Moreover, as

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they argued, none of the companies to whom First Solar Malaysia has sold the modules are in any way related to them and it is not possible for them to force these companies to cooperate with the Designated Authority. They have further argued that WTO Appellate Body in the matter of United States – AntiDumping Measures On Certain Hot-Rolled Steel Products from Japan, upheld Panel decision that facts available could be applied only if the investigating authority concludes that the party has not acted to the best of its abilities. In this regard the Authority notes that the issue has been adequately examined and addressed in the relevant paras of this finding. The Authority once again notes that information with regard to substantial volume of exports of the subject goods invoiced by First Solar Malaysia SDN BHD, Malaysia and its related exporter First Solar GMBH, Germany to India during the POI through many other parties have not brought before the Authority by filing exporters questionnaire response. Therefore, in the absence of complete information with regard to the exports made by the Company to India during the POI, the Authority is not in a position to satisfy itself about the accuracy and adequacy of the information furnished by First Solar Malaysia. In view of the above position, the Authority does not grant individual margin to First Solar Malaysia SDN BHD, Malaysia and its related exporter First Solar GMBH, in the present investigation. As regards the contention by First Solar Malaysia that inability to determine export price is grossly insufficient ground for not determining normal value on the basis of questionnaire response, the Authority notes that for the purpose of determining individual margin, the Authority requires complete information as regards both export price and normal value. In the absence of complete value chain concerning exports mad by the company, the Authority is not in a position to grant individual margin to First Solar Malaysia. In view of the same, determination of normal value concerning First Solar Malaysia is irrelevant. As regards the contention that sales made by First Solar Inc, USA to the parties in USA through a related party in Germany As regards the contention that the disclosure statement has ignored its own proposed determination in respect of First

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Solar Inc. USA where the export price and dumping margin have been determined based on questionnaire response despite the fact that one of the customers to whom First Solar, USA had invoiced the goods was outside India, the Authority notes that the issue has been addressed in the relevant para of this finding. The Authority once again notes that out of the total exports to India, an insignificant volume was invoiced by First Solar GmbH – Mainz Germany through a party in USA, in respect of which exporter’s questionnaire response has not been filed. Since the volume was found to be insignificant, the Authority excluded the said insignificant export from the total exports made by First Solar Inc, USA and First Solar GmbH – Mainz Germany and determined the net export price. As regards the argument made by JA Solar group that exports made by the group companies to the SEZ units in India are not reported in DGCI&S data, the Authority notes that the argument is unsubstantiated. In the absence of complete information about the exports made by the group, the Authority is not in a position to satisfy itself about the accuracy and adequacy of the information furnished by the group. As regards the argument made by Motech that the company has inadvertently omitted information in the EQ Response regarding related parties involved in the subject goods and therefore such action of Motech should not be considered as a ground for rejection of the entire response, the Authority notes that the issue has been adequately examined and addressed in the relevant paras of this finding. The Authority notes that Motech has a number of related companies in various countries including China are involved in the subject goods. The Authority further notes that one of its related companies in China which are involved in the export of the subject goods to India during the POI. Such action by Motech not only amounts to mis-declaration, but also deprives the Authority of enabling the Authority to satisfy itself about the accuracy and adequacy of the information furnished by Motech. . As regards the argument made by China Sunergy group that they are entitled to receive individual treatment on the basis of the direct exports to India made by them which have been duly verified and the denial of individual treatment is erroneous, the

Authority notes that the issue has been adequately examined and addressed in the relevant paras of this finding. The Authority further notes that companies belonging to China Sunergy group have made significant exports of the subject goods to India during the POI through other parties situated in Singapore and Hong Kong. However, such parties have not filed exporter’s questionnaire response in the present investigation, in the absence of which, the complete value chain in respect of the said channels of export made by China Sunergy group cannot be established. In view of the above position, the Authority does not grant individual margin to the group. As regards the submission made by Wuxi Suntech Power co. Ltd that their claim for individual margin should not be rejected by the Authority on the ground that substantial exports have been made by them through other parties since such parties are not related to them, the Authority notes that the issue has been adequately examined and addressed in the relevant paras of this finding. However, such parties have not filed exporter’s questionnaire response in the present investigation, in the absence of which, the complete value chain in respect of the said channels of export made by Wuxi cannot be established. In such circumstances the Authority is not in a position to satisfy itself about the accuracy and adequacy of the information furnished by the company. In view of the above position, the Authority does not grant individual margin to Wuxi Suntech Power Co Ltd, China PR. The Authority notes that post-disclosure First Solar Inc, USA, First Solar SDN BHD Malaysia and Solar Power Developers Association (SDPA) filed writ petitions before the Hon’ble High Court of Delhi vide WP (C) No. 3202/2014, 3203/2014 and 3206/2014. a. First Solar Inc, USA vide their WP (C) No. 3202/2014 has inter alia argued that determination of normal value by ignoring significant domestic sales in USA market made by them by invoicing through their related party in Germany is flawed. b. First Solar SDN BHD Malaysia vide their WP (C) No. 3203/2014 has inter alia argued that they should have been given an individual margin based on the normal value and export price claimed by them and not otherwise. Even if Authority does not accept export price, the normal value should have been determined

June-July 2014

based on the information provided by them, in line with authorityâ&#x20AC;&#x2122;s earlier findings and WTO Panel Report. c. Solar Power Developers Association (SDPA) vide their WP (C) No. 3206/2014 has inter alia challenged the entire disclosure statement emphasizing that the domestic industry has catered to only about 2% of the total Indian demand. With regard to the submission of First Solar Inc, USA in regard to exclusion of sales to USA party through its related party in Germany for the purpose of determination of normal value, it is noted that First Solar Inc, USA has made sales in USA market through three modes i.e. direct sales to affiliated parties in USA, direct sales to unaffiliated parties in USA and sales in USA to affiliated/ unaffiliated partiers through its affiliated party in Germany. It may be stated that First Solar, USA has not explained clearly why it was invoicing the goods to USA party through its related party in Germany, even though it was having its invoicing department in USA. This shows that there is some unexplained cause behind such transactions. It is also not clear how the sales made to an affiliated party in Germany by raising invoice in Euro currency could be treated as domestic sales even though such German related company had further sold the goods to a party in USA. Further, First Solar, USA and First Solar, Germany are two different legal entities operating in different countries and it is not clear how sales made by one entity in one country to another entity in another country can be considered as home market sale. In view of the above, the sales made by First Solar, Germany to a party in USA, by procuring the goods from First Solar, USA cannot be treated as domestic sales made by First Solar, USA in USA. The Authority further notes that the practice of invoicing some local sales through a foreign entity involving realisation of sale proceeds in foreign exchange cannot be considered as domestic sale for the purpose of determination of normal value. The Authority notes from the WTO Panel decision cited by First Solar, Malaysia that the facts and circumstances of the present case are different from the facts of the case decided by WTO. In the present case, First Solar Malaysia SDN BHD had exported more than ***% of the exports through third parties and such third parties havenâ&#x20AC;&#x2122;t filed exporter questionnaire response. In the 68

EQ June-July 2014

absence of the export price for the majority of the exports made by First solar, Malaysia, the Authority has not determined individual dumping margin. It is noted that determination of export price is crucial for determination of individual dumping margin and therefore in the absence of export price, determination of normal value becomes irrelevant. In view of the above, determination of normal value for First Solar Malaysia SDN BHD based on their data has not been made. On the contrary, in the case cited by First Solar, Malaysia, no individual dumping margin was granted even when the export price was available on the plea that data for determination of normal value was not available. Thus, it may be seen that the SAIL case as cited by First Solar Malaysia SDN BHD is not appropriate in the circumstances involving First Solar Malaysia SDN BHD in the present investigation. With regard to the contention of Solar Power Developers Association that domestic industry has catered to only about 1.25% of the domestic demand during the POI and therefore there is no need to impose any antidumping duty, the Authority notes that the domestic industry (constituted by Indosolar Ltd, Websol Energy Systems Ltd and Jupiter Solar Power Limited), had capacity to cater to 30% of domestic demand. However, due to dumped imports, they could not increase their share in the domestic market. Further, besides the domestic industry, there are 39 other domestic producers, who have created adequate capacity to cater to the domestic demand. However, due to dumped imports, these producers had resorted to imports and trading.

Offers for Price undertaking Pot disclosure the Chinese exporters namely Changzhou Trina Solar Energy Co Ltd, Renesola Jiangsu Ltd, Jinko Solar, Perlight Solar Co Ltd, Hengdian Group DMEGC Magnetics Co Ltd etc including CCCME offered to provide price undertaking with respect to the export of the PUC from China PR to India. However, the Authority does not accept the said price undertaking offers considering them as impractical to monitor.

submissions made by the interested parties and facts made available before the Authority, as recorded in this finding, the Authority concludes that: a. The product under consideration has been exported to India from subject countries below its normal value, thus resulting in dumping of the product. b. The domestic industry has suffered material injury due to dumping of the product under consideration. c. The material injury has been caused by the dumped imports of the subject goods originating in or exported from the subject countries.

RECOMMENDATIONS The Authority notes that the investigation was initiated and notified to all interested parties and adequate opportunity was given to the exporters, importers and other interested parties to provide positive information on the aspect of dumping, injury and causal links. Having initiated and conducted investigation into dumping, injury and causal links in terms of the Anti-dumping Rules laid down and having established positive dumping margin as well as material injury to the domestic industry caused by such dumped imports, the Authority is of the view that imposition of definitive anti-dumping duty is required to offset dumping and injury. Therefore, the Authority considers it necessary to recommend imposition of definitive antidumping duties on the imports of the subject goods from the subject countries in the form and manner described hereunder. Having regard to the lesser duty rule followed by the Authority, the Authority recommends imposition of anti-dumping duty equal to the lesser of margin of dumping and the margin of injury, so as to remove the injury to the domestic industry. Accordingly, the definitive anti-dumping duty equal to the amount mentioned in Col 8 of the duty table below is recommended to be imposed from the date of notification to be issued in this regard by the Central Government, on all imports of the subject goods, originating in or exported from the subject countries.

CONCLUSIONS: After examining the issues raised and

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Sl. No.

H e a d i n g / Descriptio n of goods Subheading*

Count ry of origin

Countr y of export

Producer

Exporter

D u t y amou nt

Unit

Currency

(4)

(1)

(2)

(3)

(5)

(6)

(7)

(8)

(9)

(10)

85414011

Solar Cells whether or USA not assembled partially or fully in Modules or Panels or on glass or some other suitable substrates

USA

First Solar Inc, USA

First Solar GmbH Mainz, Germany

0.11

Watt

US$

USA

Any combination other than mentioned in Sl No-1 above

0.48

Watt

US$

USA

Any country other than those subjec t to Antidumpi ng duty

Any

0.48

Watt

US$

Any country other than those subject to Antidumpi ng duty

USA

Any

0.48

Watt

US$

China PR

Canadian Solar Manufactu ring (Changhsu ) Inc, China PR

Canadian Solar Internatio nal Ltd, Hong Kong

0.64

Watt

US$

China PR

Non-Sampled Producer/ exporters as per list **

N o n - S a m p l e d 0.64 Producer / exporters as per list **

Watt

US$

China PR

Any combination other than mentioned in Sl No-5 & 6 above

0.81

US$

Watt

China PR

Any countr y other than those subjec t to Antidumpi ng duty

Any

0.81

Watt

US$

Any country other than those subject to Antidumpi ng duty

China PR

Any

0.81

Watt

US$

Malay sia

Any

0.62

Watt

US$

Malay sia

Any countr y other than those subjec t to Antidumpi ng duty

Any

0.62

Watt

US$

Any country other than those subjec t to Antidumping duty

Malay sia

Any

0.62

Watt

US$

Chine se Taipei

Any

0.59

Watt

US$

Chine se Taipei

Any countr y other than those subject to Antidumping duty

Any

0.59

Watt

US$

Any country other than those subject to Antidumping duty

Chine se Taipei

Any

0.59

Watt

US$

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June-July 2014

Power plants those put up for sale of power to third party constitute this category. Projects under this category currently are not eligible for availing RECs.

captive consumption and exchange of power with the utility. •

The Projects Under this category shall be administered by ESCOMs and KPTCL. The project developers are required to pay facilitation fee to KREDL.

The Minimum and Maximum project capacity allocation to each solar power producer for the grid connected solar power plants will be as follows: There is no limit for cumulative capacity under this category.

•

In case of solar rooftop PV Systems connected to the grid of a distribution company on a nett basis, the Surplus energy injected shall be paid by the ESCOMs at a tariff determined by KERC from time to time.

Metering shall be in compliance with the CEA Regulations 2006,the grid code ,the metering code and other relevant regulations issued by KERC/CERC From time to time.

•

ESCOMs will deﬁne speciﬁc guideline on the standards for connectivity to the network. The Scheme shall be administered by respective ESCOMs.

The State encourages Central/Karnataka State Owned PSUs and Power Exchange initiated by government or PSUs for setting up solar projects in the state for providing solar power bundled with thermal power from outside the state at the rated to be determined by the Government Subject to the approval of CERC/KERC.

•

Fiscal beneﬁts by the way of state and MNRE Subsidies Shall Be through nodal agency.

The Minimum and Maximum project capacity allocation to each solar power producer for the grid connected solar power plants will be as follows:

•

Category6:Projects Under Bundled Power

Segment 2:Grid Connect Solar rooftop project and metering: The GoK Shall Promote grid connected solar rooftop projects on public buildings, domestic, Commercial and industrial establishments through net metering and gross metering methods based on tariff orders issued by KERC from time to time.

•

The Meter reading taking by the distribution licensee shall form the basis of commercial settlement.

Site Requiement & Interconnection Voltage

•

The Project Site/ installation location may be decided based on the total energy requirement at the premises and the usable area available for installation of roof top Solar PV system. ESCOM approved export/import meters shall be installed for net metering purpose.

Interconnection Voltages:

•

Other Initiatives

•

The GOK encourages Energy-Efﬁcient design standard for energy generation, Maximizing natural light entry, Option that provide heat insulation including grid tied building integrated PV based Building architecture.

•

Government of Karnataka contemplated to amend building bye laws in respect of FAR in Coordination with BBMP/ Local bodies and urban development department to Exempt FAR in respect of additional floor area created under solar PV panels with light roofing.

Segment 3: Solar Off-Grid and Decentralized Distributed Generation (DDG) To provide access to electricity where transmission and distribution Systems are difficult to establish ,Solar powered off-Grid Solutions are Encouraged. GoK Shall encourage options like solar street lights ,roof top spv systems with battery storage and others in both rural and urban areas for the purpose of reducing dependency on grid.

Focus on solar powered IP set. Karnataka has considerable deployment of irrigation pump sets consuming about one third of the total energy. Use of solar powered IP sets is encouraged involving other department VIZ.Department of Agriculture ,Department of minor Irrigation ,Department of Horticulture and Department of social welfare.This will help supplement the conventional Power requirement apart from providing energy security to the farmers during day time.

9.Other Initiatives Solar Park:Development of solar parks helps to utilize uneven waste land for power generation ,Understand appropriate technology usage to achieve optimum efficiency,mitigate issues like watch & ward facilities by way of common infrastructure ETC. The experience will be used to decide further development of solar parks in the state.The Policy Encourages:

Net Metering: Net Metering arrangements are proposed to focus on self –consumption of energy generated from roof top PV. The Concept is a combination of

EQ June-July 2014

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a. Promotion of distributed generation through small solar parks:

•

Principal Secretary-Finance Department ,Member

The Government of Karnataka contemplates to provide financial assistance of Rupees 1 (one) Crore for development of each solar park with area not less than 100 acres through a viable model (PPP or Private Participation or Other) in the backward districts identified as per the recommendations of Nanjundappa committee.

•

Principal Secret ar y –Revenue Department ,Member

•

Principal Secretary- Irrigation Department,Member

•

Principal Secretary –Forest Department ,Member

•

Managing Director –KPTCL ,Member

•

Managing Director–KREDL ,Member

Receiving Sub-Station and metering:

•

Man aging ,Member

•

Developer in Consultation with KPTCL Shall finalize the location of receiving Sub-Station Through which the electricity intended to be evacuated at voltage levels-400/220/110/66/33/11KV Sub-Station.

•

LT Connected Solar Plant-ESCOMs Shall allow interconnection of solar power plants at 11Kv.and below voltage level as per standard / norms fixed by central Electricity Authority/Guidelines of MNRE/relevant KERC order.

KREDL Shall invite tenders to allot projects for procurement of energy by ESCOMs under preferential tariff.

•

The Metering shall be done by project developer as per the standards Specified by KPTCL/ESCOM.

12.Evacution Facilities

13.Wheeling,Banking and cross Subsidy Charges

b. Promotion of integrated Solar parks. Private Participation by providing “Plug and Play” options for developers .the promoters of the park may facilitate with additional support like EPC Service, assistance in financial closure and skill development programs etc. •

•

GoK Contemplated to create private land banks owned by individual farmers/group of farmers/associations for development of Solar projects on ling term lease basis up-to 30years (Subject to renewal after lease period) at lease rates fixed by GOK from time to time,in Co-Ordination with Revenue Department. Grid tied Canal Corridor Projects

The GOK Supports deployment of grid connected projects on canal corridor b water resources department on pilot basis subject to purchase of energy by ESCOMs. •

Grid connected “Solar with other renewable hybrid projects”

The GOK encourages projects that can benefit from existing project infrastructure. In this regard “Solar with other renewable hybrid projects”having minimum 25% of overall generation coming from respective generation sources shall be promoted through this policy .the tariff will be at a mutually agreed rate with due approval of KERC. 10. Project Approval High Level project Approval Committee (HLPAC) Specially Constituted by the GoK for the purpose of approval and overseeing project progress, of capacities larger than 50MW. The Committee Shall Constitute Following Members •

Additional Chief Secretary/ Principal Secretry-Energy Department,Chairman.

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Director

–ESCOMs

State Load Flow Studies and (ii)Short Circuit Studies etc. for seeking connectivity with the grid in reference to the provisions of the clause no.6 “Technical Standards for Connectivity to the Central Electricity Authority’s “Technical Standards for Connectivity to the Grid Regulations ,2007 and its amendments from time to time.

All projects of capacity more than 1MW under RECM,IPP and captive generation projects shall be approved by the Government. 11.Nodal Agency KREDL Shall facilitate developers with necessary support namely issue of facilitation letter to deputy commissioners,KPTCL and others.

The developer shall be responsible for connecting the generating station to the nearest grid sub-station or inter-connection point with the grid ,KPTCL/ESCOMs may at the request of developer.KPTCL/ESCOMs Shall not collect any network augmentation charges towards system augmentation beyond interconnection point. •

Generation Sub Station

The Generating plant Sub-Station shall be developed and maintained by the solar power producer as per the Grid Code applicable from time to time and the entire cost for this will be borne by them. Plant should be integrated by installing RTUs by Solar power producers so that the power fed can be monitored at receiving SubStation by the SLDC/ALDC on real time basis.

Charges Shall Be Applicable as determined by KERC from time to time 14.Reactive Energy Charges In Case of drawl of reactive power for the project, necessary charges shall be payable at the rates prescribed by KERC. 15.Fees & Charges Fees and Charges applicable for the year 2014-15 across various categories of utility scale and roof top projects are as given below: 16.Fiscal Incentives from GoK to

The Solar power producer shall furnish to SLDC/ALSC the requisite (i)Steady

June-July 2014

Supervision charges by KPTCL/ESCOMs to 5%.

Promote Solar Power. •

Tax Concessions in respect of entry Tax,Stamp duty and registration Charges shall be as per Karnataka Industrial Policy.

•

The Industrial Consumers Opting to buy power from Solar Power Project under category 3,4 and 5 Shall be allowed corresponding pro-rata reduction in contract Demand on a permanent basis but subject to the decision of KERC in this Regard.

•

Research & Development initiatives:The State encourages R&D efforts on Solar PV and CSP technologies ,plant components and others that benefit the project ecosystem.The State is Keen to Support Collaborative R&D Efforts between premier institutes and technology companies.

•

Manufacturing Support. The State has some of the best technology manufacturers in the country. The GoK will actively support the growth of local manufacturing sector for indigenous development of technologies and other ancillary components in the ecosystem.

•

Skill Development:The GoK Support programs that train and develop local cares with technical and development skills,that will help create direct and indirect job in the state.

17.Government of India Incentives: Various Concessions allowed by Ministry of New & Renewable Energy VIZ Central Excise Duty & Customs duty Exemption shall be allowed to project developer. 18.Policy initiatives under consideration of GOK to Promote Solar Power Projects. •

•

Through This policy GOK intends to bring various HT categories of consumers with connected load of more than 50KvA under Solar Purchase Obligation with the consent of KERC. GOK Contemplated to facilitate deemed conversion of land for solar projects by amending section 95 of land Reforms ACT. Purchase of Land GOK Contemplated time bound permissions and fur vesting Deputy Commissioners with full powers to approve purchase of agriculture lands U/S 109 of land Reforms Act for development of solar projects. Conversion of agricultural land for Setting up of solar Projects:

Developers will be allowed to start project execution without waiting for formal approval on filing application for conversion of agricultural land for setting up of Solar Power Projects on payment of specified fees. A Separate dedicated cell with staff drawn from revenue dept shall be created in KREDL,to ensure creation of Govt/Private land banks for development of solar projects on lease basis including formulation of modalities,fees etc. •

Solar PV Project shall be exempted from obtaining clearances of pollution control board.

•

Time bond clearance for evacuation approval from KPTCL.Reduction of

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19. Implementation of MNRE Schemes The State will continue to support implementation of JNNSM Projects and all other schemes of the MNRE. 20. Power to amend & interpret the policy. Government of Karnataka will have power to amend /Review/Interpret any of the provisions under this policy as and when required. 21.Power to remove difficulties If any difficulty arises in giving effect to this Policy ,The HLPAC as under alause10,above,is authorized to issue clarifications as well as interpretations to such provisions, as may appear to be necessary for removing the difficulty either on its own motion or after hearing those parties who have represented for chance in any provisions. Not with standing anything contain in these resolutions,the provisions of the Electricity Act 2003 and the applicable regulations issued by CERC/KERC From time to time shall prevail for the purpose of implementations of this policy.

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P O L I CY & REGUL A T I O N

Karnataka Solar Policy 2014-2021 Solar Policy 2014-2021 Preamble. The Government of India’s Jawaharlal Nehru National Solar Mission (JNNSM) launched in January 2010,with the objective of achieving 34152 MW of Solar Power Capacity By 2022 which will be around 3% of the total energy Consuption and it is a Concentrated effort to tap India’s Naturally available energy Sources and Contribute to low carbon sustainable growth in the country, while overcoming its ecological and energy security challenges. Karnataka is rich in solar resources and solar energy will complement the Conventional Sources of Energy in a large Way. The State of Karnataka is blessed with about 240 to 300 Sunny days with good solar radiation of 5.4 to 6.2 KWh/m2/day. Karnataka was the first southern state to notify its solar policy in 2011 and was the first State to commission utility scale Solar Project in India.

contribution from solar source out of total energy consumption. The advantages losses, environmental benefits, energy sustainability, lower gestation period ,offset of day time peak load etc. Considering the fact the Government of Karnataka has decide to review the policy.

2.Title. The policy shall be known as “The Karnataka Solar Policy 2014-2021”.

3. Operative Period. The Policy will Come into effect from 2014 and shall remain in force until 2021 or till such time any changes are made by the state Government.

5.Objecives

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•

To promote R&D and innovations ,Skill development in the sector.

7.Regulatory Frame Work The Electricity Act 2003 mandates Karnataka Elctricity Regulatory Commission to decide tariffs for Renewable Energy & to issue regulations regarding percentage of renewable purchase obligation to ESCOM and decide charges with respect to wheeling, banking ,cross subsidy charges. Conditions for getting accreditation to avail Renewable Energy Certificate shall be Governed by CERC and KERC regulation.

8.Minimum Program Targets

•

To Add Solar Generation Of Minimum 2000 MW by 2021 in a phase manner by creating a favorable Industrial atmosphere.

The Government of Karnataka in its endeavor to achieve minimum of 3% Solar Enegry out of total projected consumption,proposes to install 2000MW Solar Power by2021 as below:

•

To Translate Karnataka in to an investor friendly state.

It is proposed to meet the solar targets under different segments as below:

•

To Encourage public private participation in the sector.

Assessment on Solar Potential in Karnataka estimates the energy potential as 20GW.However, Considering different factors like availability of waste lands, evacuation infrastructure etc., the moderated potential may be around 10GW. Karnataka has the potential to evolve as a Solar Generation hub in India due to a host of factors. To harness the potential of solar resources in the State ,Government of Karnataka had issued a Solar Policy 201116.In light of changes unfolding in the sector and achievements made by solar forefront States, it is felt necessary to go aggressively for higher targets to achieve 3%

& distribution of energy where access to grid is difficult.

•

To promote Solar Roof Top Genaration and technologies.

•

To Encourage decentralized generation

1.Grid Connected projects It is proposed to achieve minimum 1600MW of grid connected utility Scale Solar Power generation projected for sale of power to state ESCOM’s 3rd party sale

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and captive Consumption.

2.Grid Connected roof top projects It is proposed to achieve minimum 400 MW of grid connected roof top Solar Generation Projects in the state by 2018. The Minimum targets proposed for the policy period is as below: •

Segment 1:Utility scale Grid

Selection Of Solar power projects under this category shall be through a competitive bidding process on KERC determined benchmark tariff, on need basis. GOK Shall facilitate purchase of energy generated under this category through ESCOMs. There shall be a set of qualification criteria fixed by the GoK for the prospective Developers of Solar Projects Under two Separate Categories.

Solar Projects Under The REC mechanism shall be eligible for policy benefits as allowed under CERC REC Mechanism as per the Guidelines/ Orders/Regulations issued by CERC/KERC from time to time.Under this mechanism the solar Energy Generators can sell the electricity to the ESCOMS at APPC ,as determined by the KERC. The projects under this category shall be administered by ESCOMs and KPTCL. The Project developers are required to pay facilitation fee to KREDL. The Project developers are required to pay facilitation fee to KREDL. The Minimum and Maximum project capacity allocation to each solar power producer for the grid connected solar power plants will be as follows:

connected Solar Photovoltaic (PV) and Concentrated solar power (CSP) Projects. •

Category 1:Projects to promote distributed generation by land owing farmers throughout the state.

The Government of Karnataka endeavor to promote solar energy projects preferably by land owing farmers with a minimum capacity of 1MWp and maximum capacity of 3MWp per land owing farmer in the state for sale of power to ESCOMs at KERC determined tariff from time to time. Gok shall facilitate purchase of energy generated under this category through ESCOMs.

Projects av ailing depreciation benefits and

accelerated

Projects not available accelerated depreciation benefits. The Minimum Project Capacity allocation to each Solar Power Producer for the grid Connected Solar Power Plants will be as follows:

There is no limit for cumulative capacity under this category. Category4:Projects Under Captive/ Group capative Generation. The Project set up under this category shall consume power for captive use and comply with provisions of section 9 of IE Act 2003, IE Rules with amendment andorders issued by KERC from time to time .The Project developer is allowed to avail RECs in Compliance with KERC/ CERC Regulations. The Projects Under this category shall be

Project Registration and administration of PPA’S Shall be with respective ESCOMs. The Cumulative capacity under this category shall be limited to 300MW on first cum basis within the policy period. The Capacity allocation for ESCOMs is as administered by ESCOMs and KPTCL. The Project developers are required to pay facilitation fee to KREDL. The Wheeling and banking charges and cross subsidy are as per KERC guidelines.

below: Category 2:Projects Selected based on Competitive bidding process for capacities more than 3MWp.

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The Capacity planned under this category excludes capacity allotted under JNNSM program. Category 3:Projects under Renewable Energy Certificated (REC) Mechanism.

June-July 2014

P O L I CY & REGUL A T I O N

Karnataka 500 MW Solar Tender Brief 



Karnat aka Renewable Energy Development Limited (KREDL) issued a Request for Proposal (RFP) for Inviting Interested Bidders to participate in the 500 MW Solar Tender.



KREDL after being designated as the Nodal Agency has come up with RFP envisaging development of 500 MW of solar capacity in the year 2014.



This 500 MW RFP is envisaged to meet the Renewable Purchase Obligations (RPOs) of the DISCOMS (Electricity Distribution Company Limited) of Karnataka state.

preferential tariff and bidders will not be eligible for RECs. 

KREDL on behalf of DISOCMs of Karnataka will select successful bidder/ bidders.

Based on the location of the Project respective DISCOM will sign the PPA with the Successful bidder for a period of 25 years



KREDL will facilitate successful bidders for obtaining necessary approvals from the respective Govt Agencies

The quoted tariff will be treated as

Brief about the Bid Items

Description

Nodal Agency

Karnataka Renewable Energy Development Limited (KREDL)

Location

Bidder is free to chose the location of the project anywhere in the state of Karnataka.

Min & Max capacity a company can bid

3 MW & 500 MW respectively

Period of supply

25 Years

Benchmark Tariff

KERC Tariff (Rs 8.40/Kwhr)

Delivery point

Delivery point shall be the point at 11 KV or above under nearest (Karnataka Power Transmission Corporation Limited) KPTCL S/s. Overall responsibility of arranging the transmission access will be with the developer including augmentation

Grid Connectivity

if required at the delivery point and necessary evacuation arrangements Time line for commissioning

18 months from signing of PPA

Eligibility Requirement (if bidding for >20

If the bidder or its group company choses to bid for a capacity greater than20 MW as a single project

MW)

or cumulative projects, then bidder should have already developed 30% of such proposed bid capacity. (India or abroad are not mentioned) Ex: If bidder chooses to bid for 30 MW, the bidder should have already developed 9 MW.

Ministry of Power Rating on Karnataka

B+

State DISCOMS

Important Timelines of the Bid Event

Timelines

Date

Notice for RFS

Zero date

21 st June 2014

Pre-bid Meeting

Zero date + 11 days

3rd July 2014

Submission of RFP

Within 60 days from revised RFS (zero date + 60 days)

20 th August 2014

Evalu ation of RFP & Within 10 days from submission of RFS (zero date + 70 days)

1st September 2014

Shortlisting of Bidder Acceptance of LOI

Within 7 days from the date of issue of Letter of intent (LoI date + 7 days)

22nd October 2014 (Est)

PPA Signing

Within 30 days from the date of issue of Letter of intent (LoI date + 30 days)

21st November 2014 (Est)

FC & Power Evacuation of

Within 270 days from the date of signing of PPA (LoI date + 300 days)

20th August 2015

18 Months from signing of PPA

21st May 2016

the project SCOD

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Important terms of PPA Items

Solar P.V

PPA Period

25 years from COD

Max & Min CUF

21% and 12% respectively.

Metering Point

Metering point will be at the interconnection point.

Synchronization, Commissioning

•Preliminary written notice 60 days prior to synchronization to SLDC & DISCOM •Final written notice 30 days prior

& COD

to synchronization to SLDC & DISCOM

Consent

from

K P T CL /

Within 270 days from the date signing of PPA, developer needs to obtain consent from KPTCL/DISCOM on the

DISCOM

technical & performance specifications, design and operation of facilities.

Payment Due Date

•Bill should be submitted to DISCOM between 5thto 15thday of the month. •Bill submitted between 5thto 15thday of the month will be paid on 5thof subsequent month •Bill will be settled within 30 days if submitted between 5thto 15thof the month. •Bills submitted after 15thof the month will be treated as submitted 30 days delayed

Rebate & Penalty

•2% rebate if payment made on the 5thday of the month within due date (30 days from the date of receipt of Invoice) •Penalty at 1.25% on daily basis per month on the total outstanding balance. •Irrevocable revolving LC wil be opened by DISCOM 30 days prior to SCOD •Not less than 7 days prior to expiration of LC, DISCOM will issue renewal of LC and all related charges to developer. LC validity will be 12 months from the date of opening.

Delay of COD

•Upto one month: 20% of the Performance Security •One month –2 months: 40% of the Performance Security •Two months –3 months: 40% of the Performance Security •More than 3 months: 50,000/day per MW

Technical Assumptions Fees, BG Requirements S.No

Particulars

INR

Time

Type

RFP purchase cost

10,000

During Submission of Bid

Non Refundable

Processing Fee/MW

1,10,000

During Submission of Bid

Non Refundable

Net Worth/MW

2 Cr/MW

Only Certificate

Bid Security/MW

10 lakhs/MW

One year validity from the date of submission of Bid

BG refundable

Performance Security/MW

10 lakhs/MW

During PPA signing with at least one year validity

BG refundable

from the date of COD

KERC Tariff Assumptions S.No

Particulars

KERC Assumption

Type

Lifeof the Plant

25 Years

Non Refundable

CUF

19%

Non Refundable

Capex/MW

8.3 Cr

Debt: Equity

70:30

BG refundable

Debt repayment Tenure

10 years

BG refundable

Interest Rate

12.3%

O&M Cost

1.5% of the project cost per annum

O&M escalation

5.72% YoY

Working capital

2 months receivables

Aux Consumption

0.25% of Installed Capacity

ROE

16% (Target)

KERC Benchmark tariff

Rs 8.40/Kwh

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June-July 2014

PRODUCTS Rotomag Solar and Submersible Pumps : ROTOMAG SOLAR is th epumps division of Rotomag Motors & Control Pvt. Ltd. Which is a globally recognized manufacturing of high performance DC motors, gearboxes and solar pumps since last 2 decades. Our group companies manufactures AC motors, gearboxes, Brushless DC motor, servo motor and controllers. Every year, mopre than 30,000 motors are exported to discerning customers in more than 20 countries across the world, including several Europeran countries. Rotomag was thr first company chosen by the Indian Ministry of New and Renewable Energy to develop the 2HP surface solar pump for its highly successful pumping program in Punjab and Haryana in 1999. Since then, more than 6000 pumps have been intalled under various Indian Governament, MNRE assisted programmes. We now offer a wide range of DC Surface and Submercible Solar pumps for Flood, drip, sprinkler irrigation, live stock watering, aqua culture projects, slat pan farming an durban water supply schemes. Our modern manufacturing facility, having an area of 15,000 sq. meters, has a capacity to manufacture over 750 motors and pumps per day with key operations like

•

Laser welded impellers for high discharge.

•

Thrust bearing ensures dampening of axial forces.

•

We also design and engineering capabilities to reconfigure our pumps or develop customized pumps for variety of applications as per customer requirement.

Self cleaning provision to reduce the possibilty of clogging of impellers in muddy/sandy water.

•

Made in India- easy servicing and availability of apares.

Rotomag Solar pumps and Submercible Pumps Product Detail Deep Well Centrifugal Submercible Pumps

•

Various head combination.

•

Approved by MNRE authorised test centers.

winding, magnet assembly, magnetization, impregnation, assembly and testing being carried inhouse. The assurance of ISO 9001 quality systems allow us to achieve consistent quality, production flexibility and controls over process variability.

and

discharge

Rotomag submercible solar pumps comprise a comprehensive range of pumps that operate from 1200 Wp PV array to 5000 Wp PV array. These pumps are made from SS AISI 304 grade and leature laser welded SS impellers. Brushless DC motors (BLDC) are made from rare earth magnets whioch are hermetically sealed. These high torque and efficient motors with encapsucated windings have robust construction and are more durable. The motors are completely built ensures easy service and field repairs by our service partners and also easy available of spares. Motor Controller features a built in MPPT. The contoller is housed in an IP55 housing suitable for outdoor duty and ensures an early start and operation at maximum V x I combination in various irrdiation conditions resulting in maximum water output in different sun conditions. Protection against reverse polarity, over load, overheating and dry running are integrated along with fault diagnostics.

Rotomag Submercible Pump controllers •

Built in MPPT logic.

•

Fault diagnostics to identify under coltage, dry running, tank empty, tank full, over current faults.

•

Sensories. Dry running protection and

Rotomag DC Submercible Pumps

EQ June-July 2014

•

High efﬁciency BLDC motor

•

Encapsulated winding with Thermal protection

•

SS 304 parts for long life and corrosion resistance.

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PRODUCTS automatic re-start. •

IP 55 rugged construction tropicased for 50C ambient motor or the controller. Tested as per IEC 60068-2*

•

Standard Test Conditions : AM= 1.5, E= 1000W/m² , Cell Temperature: 25°C

DC Surface Pumps Rotomag’s DC Surface are the most efficient and reliable solution for conditions where the suction head is limited to 7 meters. Compared to DC submercible pumps, Surface pumps have a signioficant higher volume of

discharge at total dynamic head upto 20 meters. These pumps are of mono block construction with the impeller mounted directly at the motor shaft. The motor uses high energy permanent magnets and rare earth magnets to achieve very high efficiency. Rotomag’s high discharge DC Surface pumps are a proven solution for irrigation requiring more than 15m3/hour. These pump0s are ideal for canal irrigation, drip and sprinkler irrigation, transfering large amount of water bover a distance.

Rotomag DC Surface Pumps •

High efﬁciency Permanent Magnet DC motor.

•

Simple 2 wire design. Direct DC operation through the PV array. No controller required.

•

Easy to install and maintain.

•

Ruggest construction with oversized bearings.

•

Long life brushes with quick replacement.

•

Approved by MNRE authorised test centers.

Implementation of advanced cooling system in utility-scale system The first heat pipe air-cooled Outdoor PV inverter The innovative cooling system of the SOLAR WARE® central inverter makes the product reliable, fail-safe and easy to maintain. The Advanced hybrid cooling design uses water cooling with heat pipes, which eliminates the need for pumps and only requires a low amount of air. Even if the ventilators fail, the inverter is guaranteed to work at an efficiency rate of up to 50 %.

Revolutionary new PV Central Inverter Design for the Solar Industry Maximum 98.7% efficiency •

Patented m ultilevel Technology

Inver ter

•

High Voltage MPPT window: up to 950V

•

Environmentally friendly: Hybrid Cooling Systems only uses WATER & consists of only two components: Slow-

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speed fan & Heat pipe heat sink. •

Higher reliability: Initially introduced for satellite thermal control technology & significantly simplifies thermal management section.

June-July 2014

PVJapan 2014

Date: 30July-1Aug 2014 Place: Tokyo, Japan Organiser: Tel.: +81 3 68691561 Email: m-suda@jpea.gr.jp Web.: www.jpea.gr.jp/pvj2014/english/index.html

The 6th Guangzhou International Solar PV Exhibition 2014

PV Project Development Africa 2014

Intersolar South America 2014 - Exhibition & Conference

Power Purchase Agreement 2014

The Fifth IASTED African Conference on Power and Energy Systems

POWER-GEN Asia 2014

Solar Energy + Technology 2014

Solar Power Asia Conference 2014

Renewable Energy India Expo 2014

Usage Aspects of Alternative and Renewable Energy Sources in Ukraine

World Renewable Energy Congress XIII and Exhibition 2014 Date: 3-8Aug2014 Place: London, UK Organiser: Tel.: +44 1273 625643 Email: asayigh@wrenuk.co.uk Web.: www.wrenuk.co.uk/wrecxi.html

Date: 19-aug-21aug2014 Place: San Diego, California, USA Organiser: SPIE Tel.: +1 360 685 5445 Email: teresar@spie.org Web.: spie.org/solar-energy.xml

Date: 26-28Aug 2014 Place: Guangzhou, China Organiser: GRAHW Tel.: +86 20 29188156 Email: grand.ev@grahw.com Web.: www.pvguangzhou.com

Date: 26-28Aug 2014 Place: S達o Paulo, Brazil Organiser: Solarpromotion Tel.: +49 7231 58598-207 Email: engelhard@solarpromotion.com Web.: www.intersolar.net.br

Date: 1-3Sep2014 Place: Gaborone, Botswana Organiser: IASTED Tel.: +1 403 2881195 Email: calgary@iasted.org Web.: www.iasted.org/conferences/home-814.html

Date: 18-aug-21aug2014 Place: Singapore Organiser : IBCAsia Tel.: +65 6508 2401 Email: leiching.yew@ibcasia.com.sg Web.: www.solarpower-ibc.com

Date: 3-5Sep2014 Place: Greater Noida, India Organiser: UBM Tel.: +91 9871 726762 Email: Rajneesh.khattar@ubm.com Web.: www.renewableenergyindiaexpo.com

World Renewable Energy Technology Congress & Expo 2014

SEMICON Taiwan 2014

Date: 21-23Aug 2014 Place: New Delhi, India Organiser: EE-Foundation Tel.: +91 92 13901510 Email: punit.nagi@ee-foundation.org Web.: www.wretc.in

Date: 3-5Sep2014 Place: Taipei, Taiwan Organiser: SEMI Tel.: +886 3 5601777-101 Email: ali@semi.org Web.: www.semicontaiwan.org

Date: 9-10Sep2014 Place: Johannesburg, South Africa Organiser: PV-Insider Tel.: +44 20 73757206 Email: marco@pv-insider.com Web.: marco@pv-insider.com

Date: 9-12Sep2014 Place: Johannesburg, South Africa Organiser: infocusinternational Tel.: +65 6325 0254 Email: lisa.tan@infocusinternational.com Web.: www.infocusinternational.com/ppa

Date: 10-12Sep2014 Place: Kuala Lumpur, Malaysia Organiser: Pennwell Tel.: +44 1992 656 610 Email: exhibitpga@pennwell.com Web.: www.powergenasia.com

Date: 7-13Sep2014 Place: Odessa, Ukraine Organiser: UkrSGRI Tel.: +38 44 2063560 Email: confreu@ukrdgri.gov.ua Web.: www.confreu.com.ua/en

Solar & Off-grid Renewables West Africa Date: 16-17Sep2014 Place: Accra, Ghana Organiser: Solarmedia Tel.: +44 20 78710122 Email: sbradshaw@solarmedia.co.uk Web.: westafrica.solarenergyevents.com

For Listing of your Event : Conference and events are listed free-of-charge, so please feel free to get in touch to tell us about your event. We would also be happy to provide you with free copies of magazine for distribution at your events.(while stock last). Please send your conference information to : Mr. Gourav Garg at gourav.garg@EQmag.net

EQ June-July 2014

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EQ June-July 2014

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www.EQMagLive.com

EQ International Magazine Editorial Advisory Board

K Subramanyam Former CEO Tata BP Solar

Shaji John Chief Solar Initiatives, L&T

Shivanand Nimbargi MD & CEO Green Infra Limited

Oliver. Behrendt Managing Director - REFU Solar Electronics Pvt Ltd

Ravi Khanna - CEO Solar Power Business Aditya Birla Group

Sunil Jaini Chief Exe. Off. & Exe. Director Hero Future Energies Pvt Ltd.

Gyanesh Chaudhary Managing Director Vikram Solar Private Limited

Gaurav Sood Managing Director Solairedirect Energy India Pvt Ltd

Rajesh Bhat - Managing Director juwi India Renewable Energies Pvt Ltd

Inderpreet Wadhwa CEO Azure Power

Arturo Herrero CSO Jinko Solar

Pashupathy Gopalan Managing Director MEMC-SunEdison

Himamsu Popuri CEO Nuevosol Energy Pvt. Ltd.

Paulo Soares CFO & Director Inspira Martifer Solar Ltd

R.N.I. NO. MPBIL/2013/50966 | DT OF PUBLICATION: JULY 20 | POSTAL REGD.NO. MP/IDC/1435/2013-2015