Markets & Policy

The input costs of the two biggest contributors to solar plant development expense have gone through the roof since the world began to come out of Covid-19 lockdowns, to leave project developers with some difficult choices.

The new energy arm of Reliance Industries Limited has made an open offer to acquire 4,91,37,420 shares from Sterling and Wilson Solar’ public shareholders at a price of INR 375 per share.

Global bids are invited to set up giga-scale advanced-chemistry battery cell manufacturing units in India under the government’s production-linked incentive scheme. To be eligible for the government subsidy, the bidder would have to commit to setting up a minimum of 5 GWh capacity. Bidding is open until December 31.

The four companies will each have half of their planned 4 GW annual production of polysilicon-to-module output subsidized by public funds.

The Indian multinational EPC contractor will increase the share of renewable energy in the electricity mix across its campuses and project sites as part of efforts to reduce its carbon footprint.

The captive solar plant in Mumbai is being developed by Cleantech through a special purpose vehicle called Sunsole Renewables. The solar electricity generated will power manufacturing operations at Siemens’ Kalwa factory in Maharashtra.

India needs to install an average of 25 GW solar capacity every year to reach its renewable energy target of ‘450 GW by 2030’ with over 60% (280 GW) from solar. The nation must build enough manufacturing capacity back home to be ready on the supply side to support the new installations. 

The International Solar Alliance (ISA), which aims to mobilize more than $1 trillion of solar power investment by 2030 in its member countries, expanded its scope of work by launching programs on solar panel and battery waste management and solar-powered hydrogen production in its fourth assembly held recently.

Parity in the total cost of ownership already exists for electric two-wheelers and three-wheelers (with subsidy) vis-à-vis their internal combustion engine counterparts. Policy impetus, coupled with the production-linked incentive (PLI) scheme for batteries and auto components (exclusively covering EVs), is likely to further reduce costs and accelerate the transition to electric vehicles (EVs). The transition will also open up the market for new-age companies and innovators across the value chain.

India has seen substantial activity in the domestic battery storage and green hydrogen markets, from the entry of Reliance and Acme Solar in green hydrogen to gigawatt-scale battery storage tenders by NTPC and the Solar Energy Corporation of India (SECI). There are more private ventures in the offing, indicating the government’s policy push is in the right direction.