21 Oct 2024
According to a report released on Sunday by the think tank GTRI, India’s goal of achieving 500 GW of renewable energy capacity by 2030 could lead to a solar equipment import bill of nearly USD 30 billion/year, heightening reliance on Chinese products. The report emphasises that establishing a self-sufficient solar manufacturing sector in India will necessitate substantial investments to create a comprehensive supply chain, especially in key areas like polysilicon and wafer production.
Without it, country could face higher import expenses and struggle to meet its renewable energy targets. It is set to install 15 GW of solar capacity in 2023-24, bringing its total capacity to 90.8 GW by September, a significant rise from merely 2.8 GW in 2014.
According to the Global Trade Research Initiative (GTRI), the country needs to increase its installations by 65-70 GW per year to meet the government target of installing 500 GW of renewable energy by 2030, with more than 80% of this target expected to come from solar power. "This goal seems quite ambitious, particularly considering India's dependence on imports, which could lead to solar power imports totalling as much as $30 billion each year," it stated.
In 2023-24, India imported solar equipment valued at $7 billion, with China providing 62.6% of that total. China dominates the global polysilicon market, producing 97% of it, and accounts for 80% of solar module manufacturing. This significant control makes it challenging for India or any other nation to compete with China due to its lower pricing.
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