MUMBAI: ReNew Power plans to start manufacturing solar cells and modules in India, the company said on Thursday. The renewable energy firm will invest ₹1,500-2,000 crore to set up a facility which will initially have a 2GW manufacturing capacity. The company is in discussion with various states to set up the unit.
"ReNew will manufacture both solar cells and modules at the upcoming facility and endeavour to create a globally competitive manufacturing unit," it said in a press release. "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."
The announcement comes weeks after Prime Minister Narendra Modi urged domestic companies to be self-reliant and reduce dependence on imports, especially in the backdrop of tensions along the India-China border.
With over 80% of India’s demand for solar cells and modules met by imports from China, the government plans to impose a basic customs duty on these items, effective 1 August, to make locally-manufactured equipment a competitive edge.
"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 in manufacturing will be key to the next phase of growth in the renewable sector," Sumant Sinha, chairman and managing director, ReNew Power said.
ReNew Power Private Limited is India’s largest independent renewable energy producer - in terms of total energy generation capacity. It generates 5.4 GW of energy through solar and wind assets and has another 4.6 GW under various stages of development throughout the country.
The company develops, builds, owns and operates utility scale wind and solar energy projects as well as distributed solar energy projects that generates power for commercial and industrial customers.
The manufacturing facility for solar cells and modules, apart from catering to ReNew Power’s generation business, will also meet the requirements of other clean energy companies in India.
omestic demand for solar cells and modules is expected to grow to 15 GW next year. The plant will be equipped to meet export requirements as well. With this, ReNew Power aims to be an integrated renewable energy company with manufacturing, generation and transmission business under one roof, the company said.