ReNew Power plans foray into solar cell and module manufacturing

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Gurugram-based ReNew Power has announced its plans to start manufacturing solar cells and modules in India. The developer will invest Rs 1500-2000 crore in setting up this facility, which will initially have a production capacity of 2 GW per annum. 

The location for the plant has not been finalized yet. The developer is in talks with various state authorities to set up this unit. 

ReNew Power’s announcement to set up a manufacturing facility comes just weeks after Prime Minister Narendra Modi’s call to Indian companies to become self-dependent (Aatmanirbhar).

Currently, India meets majority of its solar cell and module requirements through imports. The Indian government is considering a basic customs duty of 20-25% on imported solar panels from August with the tax to rise to 40% within a year. Solar cells would attract 15% customs duty from August, with that figure to rise to 30%.

Renew Power’s foray into cell and module manufacturing will help it in backward integration and provide it better control over the supply chain for critical components

Making the announcement, Sumant Sinha, CMD, ReNew Power said, “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. 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 Atmanirbharta (self-dependence) in manufacturing will be key to the next phase of growth in the renewable sector.” 

ReNew Power aims to be an integrated renewable energy company with manufacturing, generation and transmission business under one roof. 

Supply

Apart from catering to ReNew Power’s over 4.5 GW of power generation projects under various stages of development, the proposed manufacturing facility 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. Local manufacturing of modules and cells within the country 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. 

The plant will be equipped to meet export requirements as well. 

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