US, China firms plan solar manufacturing plants in India
The firms are seemingly attracted by India's ambitious solar power generation target and Narendra Modi's Make in India campaign to attract global capital
New Delhi: US-based First Solar Inc. and China’s Trina Solar are among firms that are considering plans to set up manufacturing facilities in India, lured by the nation’s ambitious solar power generation target and Prime Minister Narendra Modi’s ‘Make in India’ campaign to attract global capital.
“There is a lot of interest from major solar equipment manufacturers from across the world given our expansive programme commitments in solar," said a top Indian government official requesting anonymity. “Among the companies which plan to set up manufacturing here in India are First Solar and Trina Solar."
New York Stock Exchange-listed Trina Solar Ltd is the world’s largest maker of photovoltaic modules. First Solar builds large solar farms, mainly for utilities.
The Modi government has raised India’s solar energy target fivefold to 100,000 megawatts (MW) by 2022 to cut India’s overwhelming reliance on imported fossil fuels. In addition, the government has ambitious plans to create 60,000MW of wind power capacity by then, with an overall investment of around ₹ 10 trillion in the renewable energy sector.
US-based Sun Edison Inc. had earlier this month said it plans to establish a joint venture with Adani Enterprises Ltd to build a solar photovoltaic manufacturing facility in India with an investment of around $4 billion.
The interest from global companies has risen because of government support for clean energy, experts say.
“Clean energy investments in India jumped to $7.9 billion in 2014, helping the country maintain its position as the seventh largest clean energy investor in the world. The upswing was driven by the newly installed government elected in May 2014 which supports clean energy reforms," Bloomberg New Energy Finance said in a 23 January statement.
India’s push to boost wind and solar power production provides opportunities for global companies that are hit by the plunge in international crude oil prices. Lower oil prices can potentially derail, or at least delay, the world’s shift to wind and solar energy, as it makes less economic sense to tap costlier renewable energy sources.
In response to a question about whether First Solar was planning to set up a manufacturing facility in India, the company spokesperson in an emailed statement said: “The current policies that define eligibility for domestic manufactured modules don’t create a level playing field for First Solar’s Thin Film technology."
“We will decide the capacity once we are clear on the policy that allows a level playing field," the spokesperson added.
The US has challenged India’s solar panel procurement policies at the World Trade Organization. A dispute settlement panel has been established to hear US complaints against India’s domestic content requirements on procurement of solar cells and modules under the Jawaharlal Nehru National Solar Mission programme. Washington claims the policy discriminates against foreign manufacturers.
Queries emailed to the spokesperson of Trina Solar remained unanswered till press time.
Modi has placed special emphasis on manufacturing, in which India lags behind Asian economies such as China, to boost economic growth that slumped to sub-5% levels in each of the past two fiscal years. India has set for itself an ambitious target of increasing the contribution of manufacturing output to 25% of gross domestic product by 2025, from 16% now.
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