ReNew Power plans to start manufacturing solar cells
ReNew Power, India’s largest clean energy company, plans to start manufacturing solar cells and modules with an initial investment of Rs 1,500-2,000 crore in the sector where Chinese dominance is increasingly being challenged by government policies and corporate strategy.
Manufacturing is a natural progression for ReNew Power to ensure backward integration. It fits well with our growth plans to move towards a more integrated renewable energy play across the power value chain,” a person familiar with the development said on condition of anonymity.
Renewable energy is increasingly attracting interest of prominent business leaders. Gautam Adani recently announced plans to invest heavily in the sector to become the world’s biggest renewable energy company, while Mukesh Ambani told his shareholders on Wednesday that Reliance Industries will invest in solar, wind, hydrogen and other clean technologies, and make the company carbon-neutral in 15 years.
Following Prime Minister Narendra Modi’s call for a self-reliant India, Renew Power plans to meet the domestic renewable energy demand of 15,000 MW, which is expected to grow to 20,000 MW in the next few years.
Renew Power plans exist to export power as well. “Given the global push for renewable energy, we also see an opportunity for Indian manufacturers to cater to other global markets outside India, and a need for most players to diversify their supply chains to reduce dependence on China,” said another person.
This move comes after the government’s move to curtail imports from China, which has adversely affected the renewable energy sector. Union power and renewable energy minister RK Singh had earlier said the ministry planned to levy 15-20 per cent duty that would rise to 40 per cent in a year, to reduce dependence on Chinese imports. More than 80 per cent solar equipment used in India is imported from China.