The government plans to make local manufacturing of equipment a key element in tenders for large solar power projects, even as the country aims to add close to 500 gigawatts of renewable energy capacity by 2030, senior officials said.
The ministry of new and renewable energy (MNRE) plans to design the bids in a way to bring manufacturing into the country while taking care of the interest of small and medium developers, said Anand Kumar, secretary, MNRE. “So the bigger bids will be focused on manufacturing, while smaller bids will take care of smaller developers,” he told ET. “If there is one big bid and one player takes it all, that will be unfair.” It would be difficult to attract manufacturers with smaller bid sizes, Kumar said.
While around 80% of the equipment used in wind power projects are manufactured locally, in the case of solar projects about 90% of the equipment are imported and 85% of which come from China.The cost of solar equipment is expected to fall further after Chinese government recently decided to put brakes on its solar capacity addition. Read More