Freight charges for solar imports may remain high for next six months
POWER & RENEWABLE ENERGY

Freight charges for solar imports may remain high for next six months

The increase in the freight charges and the shortage of raw materials that have pushed the prices up for projects and scrambled timelines have hit the Indian solar developers and engineering, procurement, and construction (EPC) service providers hard.

India imported solar cells and modules worth $475.78 million, a 78% drop from CY 2019 in 2020. A decrease in demand due to the overall impact of the Covid-19 pandemic and the subsequent lockdown resulted in the import of figures going down. While a lot of people believe that the rise in freight has led to the increase in module prices, it is noted that the contribution of the overall rise in logistics, including sea freight, reported for nearly 23% of the increase in module prices in April 2021 compared to July 2020.

Under the current developments, a lot of developers have postponed their purchases and are waiting for the prices to decrease. Many people believe that the rise in freight charges will not affect the overall cost of the modules, but the increase in prices has undoubtedly affected the solar supply chain.

Solar industry remains concerned about the impact of Covid-19 on the supply chain as the experts predict an impending third wave. It is feared that if these freight charges continue to go unchecked, then the overall cost of the current projects will shoot up.

The freight charges saw an upward trend a year back with the outbreak of the Covid-19 pandemic, but since then, its trajectory has been increasing, which is adversely impacting the import of solar modules to India.

Image Source


Also read: Indian Railways freight loading forecasts growth

The increase in the freight charges and the shortage of raw materials that have pushed the prices up for projects and scrambled timelines have hit the Indian solar developers and engineering, procurement, and construction (EPC) service providers hard. India imported solar cells and modules worth $475.78 million, a 78% drop from CY 2019 in 2020. A decrease in demand due to the overall impact of the Covid-19 pandemic and the subsequent lockdown resulted in the import of figures going down. While a lot of people believe that the rise in freight has led to the increase in module prices, it is noted that the contribution of the overall rise in logistics, including sea freight, reported for nearly 23% of the increase in module prices in April 2021 compared to July 2020. Under the current developments, a lot of developers have postponed their purchases and are waiting for the prices to decrease. Many people believe that the rise in freight charges will not affect the overall cost of the modules, but the increase in prices has undoubtedly affected the solar supply chain. Solar industry remains concerned about the impact of Covid-19 on the supply chain as the experts predict an impending third wave. It is feared that if these freight charges continue to go unchecked, then the overall cost of the current projects will shoot up. The freight charges saw an upward trend a year back with the outbreak of the Covid-19 pandemic, but since then, its trajectory has been increasing, which is adversely impacting the import of solar modules to India. Image SourceAlso read: Indian Railways freight loading forecasts growth

Next Story
Infrastructure Urban

Campal Stadium Project Delayed

The football stadium and parade ground project in Campal, Panaji, which was initiated under the smart city plan, has yet to be completed, even though it is over a year past its original deadline. The project started on March 21, 2022, and according to the initial work order, it was supposed to be finished by September 20, 2023. Imagine Panaji Smart City Development Ltd (IPSCDL) has reported that 98% of the work is complete, with the final 2% expected to be finished by March 2025. "A small area where the concrete batching plant is situated needs completion," they said. The project's total est..

Next Story
Infrastructure Urban

Cleanliness Control Centre to Monitor Work, Complaints 24X7

Jaipur's cleanliness management system is set to be more efficient with the Integrated Command and Control Centre now operating 24/7. On Friday, Arun Kumar Hasija, CEO of Jaipur Smart City Limited, issued orders to implement this change. Hasija explained that the centre will supervise door-to-door refuse collection, sanitation operations, and mechanized cleaning activities. Special attention is being given to night-time cleaning across the city, with advanced machinery being used to sanitize road dividers in areas like the Walled City. The centre will now operate round-the-clock to improve c..

Next Story
Infrastructure Urban

Rs 1 Bn Plan for Waste Disposal at Bandhwari Landfill

A Rs 1 billion plan for disposing of over 10 lakh tonnes of legacy waste at the Bandhwari Solid Waste Treatment Plant has been submitted to the Department of Urban Local Bodies (ULB) for approval. The proposal is expected to be approved in an upcoming purchase committee meeting led by Haryana Chief Minister Nayab Singh Saini, officials from the Municipal Corporation of Gurugram (MCG) said. This proposal follows the December 17 deadline set by the National Green Tribunal (NGT) for MCG to submit an update on waste disposal progress at Bandhwari. Earlier this year, MCG had assured the NGT in an a..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000