ReNew Power has announced its intention to start manufacturing solar cells and modules in India. The company will invest Rs 15-Rs 20 billion in setting up this facility which will initially have a 2GW manufacturing capacity and is in discussion with various states to set up this unit. ReNew will manufacture both solar cells and modules at the upcoming facility and plans to create a globally competitive manufacturing unit. The company’s foray into manufacturing will not only help it in backward integration but also provide it a better control over the supply chain for critical components.
Apart from catering to ReNew Power’s generation business which has over 4.5 GW of projects under various stages of development, the manufacturing facility 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.