Anil Ambani’s Reliance & Solar Module Manufacturing- Will It Work Now?

Anil Ambani's Reliance To Venture Into Solar Module Manufacturing?

Anil Ambani-led Reliance Power and its subsidiaries have already tried their hands with power generation and have also stepped ahead towards battery energy storage projects. The company has also announced ventures in  solar energy generation projects and renewable energy broadly. But will they venture into the solar module manufacturing business too? Some latest media reports have hinted towards this new debut from the group.

As per a report published at South First, Anil Ambani-led firms have planned to set up a Rs 6,500 crore solar module manufacturing industry in Andhra Pradesh. The report citing unofficial confirmations and sources indicates that the company is preparing to set up the solar manufacturing business in the Anakapalli district of Andhra Pradesh.

Earlier, the company in October 2024 has announced its ambitious plans to work towards developing solar, and hydro projects in Bhutan. The plan was to develop 500 MW of solar projects and 770 MW of hydro projects with Bhutan’s Druk Holding and Investments. However, it has not publicly announced its manufacturing plans.

The solar manufacturing business is considered capital-intensive and also involves dependency on other countries for the procurement of raw materials like solar cells, wafers and ingots. In India, there are around 130 solar module manufacturing companies. With protectionist measures from the government like ALMM (Approved List of Models and Manufacturers) and tariff barriers, domestic solar module makers are now enjoying better margins for domestic solar projects.

Another module manufacturing entrant at this stage does not seem like an optimum idea, although contract manufacturing might be one of the options on the table as well.  A 1 GW plant would need to sell at least 3-4 GW over the next 4 years to recover the investments made. Add to that the impending expansion of ALMM into solar cells from June 2026, and module manufacturing without cell manufacturing seems like a non starter if your output will start only in 2026.

550 MW Solar, 770 MW Hydro Projects Mark Reliance Group (Anil) Foray Into Bhutan

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Competition From Mukesh Ambani-Led Reliance

This comes at a time when Mukesh Ambani-led Reliance Group’s plans for integrated solar and wind energy manufacturing from Jamnagar are about to fructify. The company has planned to manufacture the whole solar supply chain  and wind turbines to bolster its presence in the booming solar manufacturing business in the country. Plans to produce solar cells, ingots, wafter and polysilicon to an annual capacity of  10 GW are proceeding fast. While trial runs are already on for the module plant, the rest of the products will start seeing production start in phases right upto 2026.

Reliance Power plans to set up a 400 MW solar plant as part of its capacity expansion programme

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Diversified Energy Portfolio Of Anil Ambani’s Reliance

Earlier in December 2024, Reliance Power Limited (Reliance Power) subsidiary, Reliance NU Suntech Private Limited (Reliance NU Suntech) received a Letter of Award from Solar Energy Corporation of India (SECI) for its proposed Solar 930 MW and 465 MW/1860 MWh
Battery Energy Storage System (BESS) projects.

Reliance Power Limited, part of the Reliance Group, is one of India’s leading private-sector power generation companies. The company has an operating portfolio of 5,300 megawatts, which includes 3960 megawatts Sasan Power Limited (the world’s largest integrated coal-based power plant).