Reliance And Tata Power Compete For ₹19,500 Crore Solar Incentives.
Reliance and Tata Power are two of India’s largest conglomerates, and they’re currently locked in a race for a ₹19,500 crore solar incentives package. Both companies are hoping to secure the funds to expand their solar energy capabilities and continue their commitment to renewable energy.
According to sources, Reliance Industries, Tata Power, and foreign companies like First Solar are among the bidders for the 19,500 crores in financial incentives that India is offering to promote domestic solar module manufacturing and lessen reliance on imported solar panels from dominant producer China.
According to the article, JSW Energy, Avaada Group, and ReNew Energy Global are some other businesses that are interested. One of the biggest solar panel producers in India, the troubled Adani Group, was not a bidder, according to the article.
The financial support is a component of the Modi-led BJP government’s plan to transform India into a manufacturing powerhouse, boosting employment and lowering imports that can deplete the country’s foreign exchange reserves.
The “Made in India” initiative by PM Modi “campaign is an attempt to position the country as a rival to China in the wake of the Covid-19 outbreak, which has caused a global rush to diversify supply chains.
The government has provided funding to finance an increase in India’s module production capacity to 90 gigawatts, which would be enough to meet domestic demand in addition to supplying international markets.
Yet, the bids come amid worries that the country’s transition goals are being undermined by the emphasis on domestic manufacturing, which is dragging down initiatives for renewable energy.
Raj Kumar Singh, the minister of electricity, stated last month that his department is thinking of temporarily “relaxing “a significant impediment to module imports that may hasten projects. After multiple delays, the state-run Solar Energy Corp’s deadline for bids, which was being conducted, was 28 February. Projects and incentives still don’t have enough information available.
According to research firm Mercom Capital, India’s capacity to produce solar modules is anticipated to reach 95 GW by the end of 2025. According to the research company’s most recent report, the capacity for producing solar modules was 39 gigawatts (GW) as of September of last year.
The National Program on High-Efficiency Solar PV Modules received approval from the Union Cabinet in September of last year for a PLI scheme of 19,500 crores, with the goal of luring 94,000 crores in investment.
Understanding the Solar Incentives Package
The Indian government announced the solar incentives package as part of its push towards renewable energy. The package offers incentives to companies that produce solar power in India, with a goal of increasing the country’s solar energy capacity to 280 GW by 2030.
The package offers a fixed tariff rate for solar power and various other benefits such as reduced taxes and access to low-cost financing. The incentives package has attracted much attention from companies in India’s energy sector, including Reliance and Tata Power. Both companies are hoping to secure a significant portion of the package to fund their own solar energy projects.
Reliance’s Solar Energy Capabilities
Reliance is one of India’s largest conglomerates, with interests in energy, retail, telecommunications, and more. The company has been working on expanding its solar energy capabilities for several years, and it currently has a total solar capacity of 1.8 GW. Reliance has set a target of achieving 100 GW of solar capacity by 2030, which would make it one of the world’s largest solar energy producers.
Reliance has been investing heavily in solar energy projects across India to achieve this target. The company recently announced plans to build the world’s largest solar manufacturing unit in Gujarat, which will have a capacity of 100 GW. Reliance is also working on several other large-scale solar projects, including a 750 MW solar park in Rajasthan.
Tata Power’s Solar Energy Capabilities
Another significant operator in India’s energy market that specializes in renewable energy is Tata Power. The company has a total solar capacity of 3.5 GW, making it one of India’s largest solar energy producers. Tata Power has set a target of achieving 15 GW of renewable energy capacity by 2025, with a significant portion coming from solar energy.
Tata Power has been investing in solar energy projects across India to achieve this target. Gujarat will host one of the most significant solar projects ever built after the company announced plans to build a 10 GW solar park there. Tata Power is also working on several other large-scale solar projects, including a 110 MW solar project in Karnataka.
The Race for the Solar Incentives Package
With both companies vying for a significant portion of the solar incentives package, the race is heating up. Reliance and Tata Power have both submitted proposals to the Indian government outlining their plans for solar energy projects and how they would utilize the incentives package.
Reliance’s proposal includes plans for a 100 GW solar manufacturing unit and several large-scale solar projects across India. Tata Power’s proposal includes plans for a 10 GW solar park in Gujarat and several other solar projects across the country.
The Indian government is expected to decide on the incentives package in the coming months, and the race winner could have a significant advantage in India’s renewable energy sector.
Impact on the Solar Industry
The Indian government’s solar incentives scheme is expected to have a significant impact on the solar industry in India. The scheme will likely attract new investments and help domestic manufacturers compete with cheaper imports from countries like China.
The scheme will also help India achieve its ambitious target of generating 175 GW of renewable energy by 2022. The Indian government reports that as of January 2021, the country’s installed renewable energy capacity was 93.5 GW, as reported by the Ministry of New and Renewable Energy.
Edited by Prakriti Arora