What's the use of photovoltaic solar power India security policy?

Facing India China many years ago the two ends of the same outer situation, face raw materials and equipment at least out of embarrassment. Yet India almost never get the United States to China for China photovoltaic pv double inverse of the historic development opportunity, it's hard to 10 - in the future 20 years like a western China offering cheap silicon material to produce energy.

as this number many times on the analysis of the Indian market and India's trade policy, India in order to protect its domestic solar battery and component manufacturing, from July 30, 2018 two-year security taxes levied on imports of solar energycells and components, India also for photovoltaic pv back, EVA, photovoltaic glass imposing anti-dumping duties.

from India's trade relief agency ( DGTR) Announced a preliminary ruling to the final during the 7 months of tariffs, tariff and pass on terms and conditions of the uncertainty of the time limit for photovoltaic dampened investors to participate in bidding, lead to tariff increases. In addition, has led to the tariff increases the bidding agencies cancelled in 2018 nearly 5 gigawatts of awarded project capacity.

today, the original two years period has already passed more than a year, the pv developers on July 29, 2020 after reassess whether the protection policy may be postponed, and on the basis of planning for their investment projects. Often, only when submitted to DGTR review application to review and delay the protection regulations, once the application will be released, developers will also be notified. Furthermore, whether the review investigation itself may have different effects on photovoltaic industry. The following is the analysis since the implementation of the policy.

　　1. Security tax's influence on the source of import

one country impose security taxes, to limit the threat to the surge in imports of domestic industry. It is for a particular product, and extended to import the product from all countries, there may be some developing countries will be ruled out. Photovoltaic (pv) for India, DGTR exempt from the import of products from developing countries pay security taxes. However, due to China, Taiwan and Malaysia do not accord with standard of duty-free imports, therefore apply to tariffs on imported products in these countries.

in order to record the trade data, India will solar cells and components in the same tariff classification ( HS) Code - 85414011, this classification is the cause of India think battery and component imports cannot be determined separately. portal, however, will be solar cells and components of the value of imports (after comparison with data of project installation Considering between import and installation in three months time,) Can find interesting. While from the point of absolute value, a drop in imports ( During August 2018 to July 2019 fell 23% year on year) Installed, but the project with the same trend to decrease ( FIG. 1) 。 Can therefore be concluded that the execution of the low-income tariff increase market share of domestic components have little impact in India.

figure 1: the project installation quantity change and the relation between import data

to impose security after-tax a period of trade data also shows the solar cell and components purchasing more diversified sources ( Table 1. ) 。

can be seen from the standard, China's share of imports fell by about 10%. Due to China's domestic 5. 31 policy change, Chinese component prices from June 2018 to July 2019 plunged about 25%, China probably won't fall in the share of imports more.

and imported from other countries such as Thailand, Vietnam, and Singapore's share of the change is bigger, largely from the tariff protection policy for the exemption in Thailand and Vietnam. According to expert analysis, if the tariff protection policy review survey in 2020 and extend, is likely to be revoked exemptions for Vietnam and Thailand. At the appointed time, solar energynet, China's import market share more not be affected.

　　2. The limitations of tariff protection

if there is no review, tariff protection will expire in July 29, 2020. Review will decide whether should extend to implement security taxes. Submit an application for re-examination depends on whether domestic manufacturers will benefit from the course.

have long argued that to impose security tax purpose is to provide protection for the domestic industry, from the influence of the surge in imports of similar products or competitive products, and improve the competitiveness of domestic industry structural. China solar net, however, not have to rely on the components of the upstream and downstream industry chain manufacturer to import batteries, solar panels, it occupies a large share in the domestic photovoltaic, tariff increase battery life, make component manufacturing raw material costs will increase, so the cost of India's component manufacturing and no big advantage, relative to the foreign manufacturer, the fundamental source of competitive disadvantage & ndash; Battery manufacturing capacity has not been solved, investors have been reluctant to implement security tax year of manufacturing capacity for new investment.

these competitive disadvantage sources include:

- In the Indian capital debt investment without preferential;

　　- Electricity price is too high, can't support the upstream industry, especially the silicon and silicon material industry;

　　- Operation is too small;

　　- The lack of vertical industry chain integration;

　　- No market protection;

　　- The lack of new technology investment.

the government public sector undertakings ( 苏共) Plan in the second stage for the value of 12 gw domestic components provide a guaranteed market, it can only provide stimulus for components factory to expand existing capacity. The silicon, wafers, cells are high power consumption link, the Indian high electricity prices can't support this kind of industry. And if you can't have silicon material, wafer, cell and other core technology, component manufacturing is only a low level of assembly.

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