ECONOMY
India’s 500-gw green energy target may drown it in huge import bill, warns GTRI
- IBJ Bureau
- Oct 21, 2024
The country's target of installing 500 gw of renewable energy by 2030 may push solar equipment import bill to about $30 billion per year and increase dependence on Chinese goods, think-tank Global Trade Research Initiative (GTRI) said in a report on Sunday.
It said developing a self-reliant solar manufacturing industry in India will require significant investment to create an integrated supply chain, especially in areas like polysilicon and wafer production.
Without this, India may continue to face high import costs and struggle to meet its renewable energy goals.
India installed 15 gw of solar capacity in 2023-24, raising the total to 90.8 GW by September, compared to just 2.8 GW in 2014, it said.
To meet the government’s target of installing 500 gw of renewable energy by 2030, India needs to significantly ramp up installations to 65-70 gw each year, with over 80 per cent of this target expected to come from solar power, according to GTRI.
“This target seems ambitious, particularly given India’s reliance on imports, which could push solar import to $30 billion annually,” it said.
In 2023-24, India imported $7 billion worth of solar equipment, with China supplying 62.6 per cent.
China controls 97 per cent of global polysilicon production and 80 per cent of solar module manufacturing, making it difficult for India or any country to compete due to lower prices from China.
GTRI Founder Ajay Srivastava said while initiatives like the Production-Linked Incentive (PLI) Scheme aims to boost local manufacturing, impact is limited as it relies on large-scale use of imported inputs.
The report said that India’s solar manufacturing industry is in early stages, with most projects relying on imported ready-to-use modules.
Report By
View Reporter News