The country’s largest renewable energy company, ReNew Power, intends to start manufacturing solar cells and modules in India. The announcement was made by ReNew’s Chairman and Managing Director, Sumant Sinha on Thursday.
ReNew Power will invest Rs 15-20 billion in setting up this facility that will initially have a 2GW manufacturing capacity. The company is currently is in discussion with several states to set up this unit.
ReNew Power’s announcement to set up a manufacturing facility comes just weeks after Prime Minister Narendra Modi’s call to Indian companies to become ‘Aatmanirbhar’ or self-reliant.
Elaborating on the decision, Sumant Sinha, CMD, ReNew Power said, “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.”
ReNew will manufacture both solar cells and modules at the upcoming facility to global standards. The company’s foray into manufacturing will not only help it in backward integration but also provide it better control over the supply chain for critical components.
This manufacturing facility, apart from catering to ReNew Power’s generation business which has over 4.5 GW of projects under various stages of development, will also meet the requirements of other clean energy companies in India. The domestic demand for solar cells and modules is expected to grow to 15 GW next year. Domestic manufacturing of modules and cells within the country will help renewable energy players to reduce their dependence on imports from China, which currently accounts for almost 80 per cent of the world’s module production. The plant will be equipped to meet export requirements as well. ReNew Power aims to be an integrated renewable energy company with manufacturing, generation and transmission business under one roof.