Energy News Digest 10/03
It is tariff season.
Taking a cue from US President Donald Trump, Indian solar manufacturers are calling for protective tariffs against Chinese imports of polysilicon, ingots, and wafers—key materials for solar panels. At a recent meeting, industry representatives urged India’s renewable energy ministry to impose safeguard duties (SGD) on these imports, citing the example of the approved list of models and manufacturers (ALMM) for cell and module imports. “Need of the hour is to shift focus towards capital and energy-intensive upstream manufacturing, which is currently dependent on China with heavy dumping and price manipulation,” they said.
China already reduced export tax rebates from 13% to 9% for solar PV products last December, thus making its products costlier in the international market. Officials said the move was aimed at encouraging higher-quality production and innovation.
As its name suggests, ALMM is a sourcing list for solar materials. All government-assisted and sponsored solar projects are compulsorily required to source solar PVs and modules using the list. The list is not comprehensive, however, because it does not include suppliers for polysilicon, ingot, and wafer production.
Chinese wafer exports to India surged by 91% in 2023, reaching $318 million. While Chinese solar cells and modules already face a 20% SGD, upstream manufacturers seek similar protections. They also advocate for import duty exemptions on capital goods and raw materials, as well as financial incentives such as capital subsidies, priority lending, and accelerated depreciation for plant and machinery. In their presentation to government authorities, solar manufacturers also called for greater industry-academia collaboration and setting up of skilling centers.
Indian coal imports decline
Meanwhile, India’s thermal coal imports declined for the sixth consecutive month in February 2025, dropping 15.3% to 12.16 million metric tons. This trend aligns with a slowdown in manufacturing activity and increased domestic coal production. Over the past six months, imports have decreased by 20% to 77.3 million metric tons.
Despite expectations of higher coal consumption during the upcoming summer months due to increased electricity demand, rising domestic production may reduce the need for additional imports. While thermal coal prices have slightly rebounded recently, they remain over 30% higher than levels seen in the latter half of the previous decade.
Analysts are forecasting a spike in prices for the polluting fuel this year. Australian thermal coal prices are hovering around $100 per ton due to mild winter conditions and global oversupply, reaching levels last seen in May 2021. While there is no let up in demand for coal, banks and energy firms are hesitant to pour funds into new projects. Yet a price hike, even in today’s volatile geopolitical environment, does not translate to an endgame for the fossil fuel. The economies of China and India, which together are estimated to have consumed three quarters of overall demand last year, still run on coal. In fact, Coal India Ltd. is the world’s largest coal producer. Despite a remarkable expansion in global renewable energy capacity, surging power demand in both countries will ensure that coal has a significant runway ahead.
