Solar manufacturing road map
#GS3 #Electricity #Infra&Development
The novel coronavirus disease (COVID-19) pandemic has thrown India’s economy off the track. The restrictions imposed on supply chain in the wake of the unprecedented lockdown adversely impacted installations of solar photovoltaic (PV) systems. The dependence of the Indian solar market on Chinese imports has affected growth of the sector.
- India has a strong manufacturing base for wind equipment; about 87 per cent of our needs are catered to by imports from Chinese markets in the solar industry, which could potentially threaten energy security.
- The pandemic, however, has shone the spotlight on the importance of building domestic manufacturing facilities for solar energy.
- India has a lot of potential for solar — 20 gigawatt of solar capacity is under installation currently. The dependence on imports is increasing as well.
- India had deployed 87 GW of renewable energy capacity as of 2019, and these numbers need to be viewed against the target of achieving 450 GW of renewable energy capacity by 2030 (a large part of it is solar).
- Capacity additions peaked till the financial year 2018, but module prices and solar imports declined over the last two years.
Low on Labour cost and High on capital cost
- “India is low on labour cost and high on capital cost and prohibitive power tariffs, and the absence of incentives makes India non-competitive globally,” said Pranav Master, director, CRISIL Infrastructure Advisory, during a webinar on Solar Manufacturing Road Map: Making India Self Reliant. It took place on July 30, 2020.