India is seeking to expand the production of solar energy units and cells locally, to achieve its ambitious climate goals by generating half of its electricity needs through renewable energy sources by 2030.
The South Asian country needs investments of $7.2 billion over the next 3-4 years to boost the integrated manufacturing of solar modules.
India is the world’s fourth largest installed renewable energy hub, and last year the country successfully installed 13 gigawatts of clean energy.
Advantages of manufacturing solar modules
Supporting local manufacturing could help India’s solar PV manufacturers generate $30 billion (Rs 2.3 thousand crore) in revenue by 2030, by selling 150 gigawatts at Rs 15 ($0.19) per kilowatt, and create jobs. for 41,000 workers, according to a recent report by the Center for Energy Finance, CEEW.
India is currently dependent, and even the growth of the capabilities of manufacturing solar modules locally, on direct or indirect Chinese imports through Chinese companies in Asian countries.
“India’s drive to localize its solar manufacturing chains locally will require investments of $7.2 billion (Rs.53,700 crore) over the next 3-4 years,” said Rishabh Jain, director of the center.
The total renewable energy capacity in India is currently around 110 GW.
He added that solar energy is the cornerstone of India’s goal of generating 500 gigawatts of non-fossil fuel sources by 2030, and achieving carbon neutrality in the long term.
India intends to achieve carbon neutrality in the country, of which solar energy is one of the most important pillars, in 2070.
Promote domestic industry
Jain emphasized that the current geopolitical and energy crises point to the importance of reducing dependency on imports and developing a strong and reliable domestic supply chain for industries critical to green transformation, according to India’s local newspaper, Economic Times.
The Indian government has announced several measures to boost the domestic manufacturing of solar energy during the 2021-2022 fiscal year, including allocating $3.2 billion (Rs 24,000 crore) for production incentives, in addition to imposing customs duties of 25% and 40% on all imports of cells and energy units. straight solar.
Major Indian companies – including Reliance, Adani and Shardy Sai Electrics – have expressed their willingness to work on manufacturing an integrated unit with a capacity of 12 GW.
Expectations indicate that the local cell manufacturing capacity in India will be 33 GW, and the unit capacity will be 51 GW by 2025, paving the way for manufacturing imports to be dispensed with.
India’s rating agency, Crisil, expects India to add 14 gigawatts of solar generation capacity annually between 2022 and 2024, which will increase demand for solar cells and modules.
The Indian agency expects to implement 30-35 GW of production capacity for new solar modules by the end of the 2024-2025 fiscal year.
(Indian rupee = 0.013 US dollars)
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