India Should Focus on Full Value Chain of Solar Manufacturing: TERI

If India is to achieve its solar energy target of 100 GW by 2022, it should take up the full value chain of solar manufacturing, a new report has revealed.

A new report has highlighted that if India is to achieve its solar energy target of 100 GW by 2022, it should take up the full value chain of solar manufacturing from polysilicon to modules in a phased manner.

In the first phase, about 15 GW capacity could be targeted over a period of two to three years for manufacturing of cells and modules with full value addition and with an overlapping backward integration plan, the report by The Energy and Resources Institute (TERI) said. 

TERI Director General Ajay Mathur said the challenge is to match demand and indigenous manufacturing capacity with international manufacturing capacity. 

“It is possible to have an indigenous solar manufacturing facility that delivers on the three points of reliable energy access, cost of supply, and local manufacturing that can meet demand.”

The report’s main recommendations are that the government should consider prioritising PV manufacturing value chain as a strategic industry, and local manufacturing capacity of 15 GW of ‘full value chain Silicon Ingot to solar modules’ should be operational at competitive prices by 2024. 

For this, it suggests initiating a Phased Manufacturing Programme (PMP), under the Make in India plan. 

Stressing that India should make every effort to develop indigenous manufacturing, Ajay Shankar, Distinguished Fellow, TERI, said, the government should invite bids for manufacturing of solar panels with full value addition in India, along with ensured sales for four years. 

“It should also provide land, power supply and environmental clearance and develop solar manufacturing plants along the lines of SEZ.”

Shekhar Dutt, Director General, Solar Power Developers Association (SPDA), said, the size of the solar market across the world is very big. India should develop manufacturing capacity not just for the domestic market, but also for terawatt market. He added that this will lead to an enormous possibility of generating employment in India.

“The rationale for the decision to go for manufacturing is self-reliance with an aim to sustain our own national solar programme without any hiccups under circumstances of international issues,” said Ashvini Kumar, Senior Director, Renewable Energy, TERI. 

Asserting that it is a good starting point, Mathur added, further steps of inviting a group of financial experts to assess the costs and incentives (for solar manufacturing) need to be carried out.