ReNew Power on Thursday said it will invest Rs 1,500-2,000 crore to set up a 2-gigawatt (GW) solar cells and modules manufacturing facility.
The foray into manufacturing is to provide the country’s largest renewable energy company a better control over its supply chain for critical components, as most of these equipment are sourced from China, and the government has started taking steps to reduce import dependency from the hostile neighbour.
“ReNew Power aims to be an integrated renewable energy company with manufacturing, generation and transmission business under one roof,” the company said in a statement.
“I firmly believe that aatmanirbharta in manufacturing will be key to the next phase of growth in the renewable sector,” Sumant Sinha, CMD, ReNew Power, said.
The company currently owns 5.4 GW of operational solar and wind assets and has another 4.6 GW capacity under various stages of development. ReNew’s broad base of equity investors include Goldman Sachs, Japan’s Jera, Abu Dhabi Investment Authority and Canada Pension Plan Investment Board.
The company’s announcement comes at a time when 50% of the country’s 11-GW domestic panel-making units and 3-GW of cell manufacturing facilities remain unutilised in a market where technology changes very frequently, lower returns have also prevented most of the local manufacturers to invest much in research and development for offering upgraded products to meet global standards.