Page 8 - AsiaElec Week 05 2022

AsiaElec RENEWABLES AsiaElec

India to invest $2.6bn in

solar capacity to reduce

exposure to China

INDIA INDIA has revealed ambitious plans to invest facility in Tamil Nadu.
$2.6bn in supporting domestic manufacturers US-based First Solar, which was the first of
of solar modules in a bid to cut imports from the world’s ten largest solar manufacturers to
China. join the Responsible Business Alliance, will
India currently imports 80% of its solar com- replicate its industry-leading transparency and
ponents from China and needs to develop its traceability protocols in India, amplifying efforts
domestic capacity if it is to meet a government to boost supply chain transparency throughout
target of 280 GW of solar power by 2030. the renewable energy sector.
The new cash follows an existing INR45bn Most of the new facility’s production is
($600mn) package of incentives to support expected to sell into the quickly growing solar
investment from the country’s industrial giants, market in India, which is a key partner to the US
such as Reliance Industries and Adani Group. in the Indo-Pacific region.
Indian Power Minister Raj Kumar Singh last The new policy will help boost India’s self-suf-
week raised new concerns when discussing plans ficiency in solar modules and open up export
for local manufacturing of smart meters. The opportunities, according to credit assessor Crisil
country does not want to “buy anything from Ltd.
our northern neighbour,” he said. Incentives will potentially help create 30-35
Adding production in clean energy technol- GW of solar module capacity and as much as
ogies “opens up huge employment opportunities 30 GW of cell capacity by 2024, Crisil said in a
and will take the country on a sustainable devel- tweet.
opment path,” Finance Minister Nirmala Sithar- Along with more aid for solar module mak-
aman said this week. ers, India will encourage the use of biomass
India said at COP26 that it aimed to reach pellets as fuel in thermal power plants (TPPs),
net zero by 2070 and intends to supply 50% of its Sitharaman said.
overall energy needs using current and explor- India’s dependence on Chinese imports
atory renewable sources. It will also increase extends across the entire energy sector. Rela-
non-fossil fuel generation by the end of the cur- tions between the two have worsened over fears
rent decade – an estimated total of 500 GW if of cyber-attacks, border conflicts and pandem-
achieved. ic-related supply disruptions.
Meanwhile, the US is supporting solar cell US support for India’s solar industry is being
manufacturing in India. The US International pursued against a background of regional rivalry
Development Finance Corporation (DFC) with China, which is currently the largest pro-
in December approved up to $500mn of debt vider of India’s solar panels.™
financing for First Solar’s 3.3-GW proposed
photovoltaic (PV) solar module manufacturing

P8 www. NEWSBASE .com Week 05 02•February•2022