India’s Leading Renewable Power Genco ReNew To Enter Solar Cell, Module Manufacturing With ₹2,000 cr Investment
India’s leading renewable power generation company, Goldman Sachs-promoted ReNew Power, has announced its entry into manufacturing solar cells and modules. The company has indicated it will invest close to Rs 1,500-2,000 crore for its manufacturing facility of 2 gigawatt (Gw).
The company is in discussion with various states to set up a facility for the purpose, a statement by ReNew Power said.
The company will manufacture both solar cells and modules at the upcoming facility and endeavour to create a globally competitive manufacturing unit.
The company’s foray into manufacturing will not only help it in backward integration but also provide it a better control over the supply chain for critical components, it added.
“India has grown into a big market for renewable energy and the time has come to reduce our dependence on imports and start domestic manufacturing of key components’” the company said
“The domestic demand for solar cells and modules is expected to grow to 15 Gw next year. Domestic manufacturing of cells and modules within the country will help renewable energy players reduce their dependence on imports from China, which currently accounts for almost 80 per cent of the world’s module production. The plant will be equipped to meet export requirements as well,” the statement noted.
ReNew Power is one of the biggest generators of renewable energy in India and the move to start manufacturing of solar modules and cells is a natural progression for us. I firmly believe that 'aatmanirbharta' in manufacturing will be key to the next phase of growth in the renewable sector," Sumant Sinha said.
This manufacturing facility, apart from catering to ReNew Power’s generation business which has over 4.5 GW of projects under various stages of development, will also meet the requirements of other clean energy companies in India.
The domestic demand for solar cells and modules is expected to grow to 15 GW next year.
Domestic manufacturing of modules and cells will help renewable energy players to reduce their dependence on imports from China, which currently accounts for almost 80% of the world’s module production, it said.
The plant will be equipped to meet export requirements as well. ReNew Power aims to be an integrated renewable energy company with manufacturing, generation and transmission business under one roof, it said.
In a bid to strengthen domestic solar manufacturing and reduce dependence On China, Solar Energy Corporation of India (SECI) recently completed the world’s largest solar power tender that also had a major manufacturing component as well. Adani Green Energy and Azure Power was awarded a total power generation capacity of 12 gigawatts and 3 gigawatts of solar module production capacity.
Indian solar power developers imported over US$6 billion worth of Chinese solar cells and modules between FY 2017 and FY 2019. There was a sharp 45% decline in value of imports between FY 2018 and FY 2019.
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