Demand for domestic solar cells and modules will grow to around 36 giga-watt (GW) in the next three years, Prime Minister Narendra Modi said on Thursday, underscoring the need for India to be a global manufacturing hub for renewable energy. Incentives would be given for local production of these products, he said.
Currently, the country’s domestic solar-panel capacity is around 10 GW; there is also another 3 GW of cell manufacturing facilities. However, about 50% of the country’s manufacturing capacity remain unutilised as developers have preferred to import cheaper equipment, mostly from China, to build solar plants.
Addressing the third edition of RE-Invest, an annual renewable energy investors’ meet organised by the government, Modi said that India is likely to generate business prospects of around $20 billion per year for renewable energy players over the next one decade.
The country has set a target to raise the installed capacity of renewable energy from the current level of 89 GW to 450 GW by 2030. About 35 GW is under various stages of implementation and 30 GW in the bidding stage.
If the 45.7 GW of hydro and 6.8 GW of nuclear capacities are included, the target under the Paris climate change accord of having 40% of installed power generation capacity from non-fossil fuel sources can be achieved by 2022 itself.