New Delhi: The Government is working on a new incentive system to strengthen the production of wafers and ingots, key subplorence concerning the production of solar photovoltaic (PV) modules, in the middle of the pulled supplies from China.
The Ministry of the Union for new and renewable energy (MNre) is likely to spend unused sum around £5 500 crore from an existing motivational scheme for the production of solar modules to increase the production of these key inputs, added and demanded anonymity.
In April 2021, the Cabinet of Trade Unions approved the Scheme of Motivation (PLI) associated with production for the National Program for High -Effective Solar PV modules under the Ministry of New and Renewable Energy with Expenditure £4 500 crore. Subsequently, the government approved the second trance of the PLI system in September 2022 with an expenditure £19 500 crore, of which £13 937 crore has already been assigned. Residue £5 563 Crore is likely to be diverted for a new motivational system to strengthen the production of wafers and ingots.
In the solar module supply chain, Polysilicon is an initial raw material that is used to produce ingot, which then develops on a wafer, followed by cells before finally assembled solar photovoltaic module.
“The MNre design is that there is already an unused fund within the PLI system, which can be used specifically for wafers and ingots. The scheme is completed,” the first of the three cited earlier.
The ways of the proposed system are processed and are expected to differ from the ongoing PLI system.
Within the PLI for solar modules, production units are sanctioned within this system eligible to obtain incentives every year for five years from the introduction of capacity based on the sale of high-efficient solar PV (photo-voltaic) modules per year.
Slow pace of implementation
Considering the modality of the motivational system comes in the middle of the slow pace of project implementation in the ongoing PLI. In June, Mint said the government was considering expanding the deadline for completing projects within the PLI program in the middle of a delay in the field of technology and supplying components from China.
The other person noted that the government would also probably announce the expansion of the deadlines within the ongoing system within one year to FY27. Planned dates of commissioning for projects within the second trance from October 2024 to April 2026.
Questions sent to the Ministry of the Union for new and renewable energy remained unanswered until the press.
At the beginning of this month, the new energy minister and renewable energy sources of Pralhad Joshi emphasized the plans for the development of a fully indigen chain of solar values, which by 2028 focuses on the production of domestic solar articles with local components. He also emphasized the focus of the government to support the production of wafers and ingot in the country.
“The country is now proceeding beyond the modules to develop domestic capacity for wafers and ingots, ensuring that the entire ecosystem for solar production is established in India. This not only reduces import dependence, but also generates employment, increases investments and strengthens India as a pure energy leader,” Joshi said. So far, probably £50,000 crore has been invested in the solar equipment sector in the country.
In the middle of concerns and the needs of local capacity, India has developed about 100 GW of solar module capacity and about 27 GW of cell production capacity. However, the capacity for the production of wafers and ingots is only about 2 GW, while the country relys on Chinese imports.
According to Careedge’s report, recent volatility at initial prices, powered by the supply chain shifts in China, it strengthens the reason for setting up the wafer and Ingotian capacity in the country.
The Ministry has already proposed to come up with an approved list for models and manufacturers (AlMM) for wafers since June 2028. If the plan takes a specific shape, all solar modules used in projects supported by the government will have to use locally produced wafers and ingots. Currently, the standard is usable for modules. The rules will apply to cells with an effect from June next year.
(Tagstotranslate) solar photovoltaic modules
