One of India’s leading renewable energy companies has secured approval to set up production facilities for solar cells and modules and lithium-ion batteries.
ReNew Power had submitted proposals to set up a solar cell and module production facility with 2–4 gigawatts per annum capacity and another facility to produce lithium-ion batteries. These proposals, submitted to the government of the western state of Gujarat, have now been approved. These facilities will require an investment of around Rs 40 billion ($570 million).
ReNew Power is yet to publicly share any details about the two facilities. According to earlier media reports, the company had expressed interest in setting up a 2-gigawatt solar cell production facility in the state of Rajasthan. It remains unclear if the company still plans to go ahead with a facility in Rajasthan or has shifted its plans to Gujarat.
ReNew’s decision to set up a solar cell and module production facility has been spurred by the Indian government’s production-linked incentive scheme. Offered for multiple electronic and semiconductor products, the scheme has helped India attract investments from the likes of Samsung and Apple.
Apart from this incentive scheme companies are also bullish on solar cell and modules manufacturing due to high solar power capacity targets and the possibility of imposition of new import duties on Chinese cells and modules.
According to media reports, the Indian government has received investment proposals for new solar cell and module production facilities from 15 Indian and foreign companies. Combined, these companies have shared plans to invest $3 billion to set up 20 gigawatts of solar module production facilities, 20 gigawatts of solar cell production facilities, and 10 gigawatts of solar wafer production facilities. The government has earmarked $640 million to offer incentives under the production-linked scheme.