ReNew Power to enter solar manufacturing with Rs 2,000 cr investment plan

Goldman Sachs-backed firm plans plant for 2 Gw of solar cells and modules, is in talks with several states to set up plant

India’s leading renewable power generation company, Goldman Sachs-promoted ReNew Power, has announced its entry into manufacturing solar cells and modules on Thursday. The company has indicated it will invest close to Rs 1,500-2,000 crore for its manufacturing facility of 2 gigawatt (Gw).

The company said it is “in talks with several states to set up the unit”.

In a public statement, ReNew Power said, “its foray into manufacturing will not only help it in backward integration, but also provide it better control over the supply chain of critical components”.

The company said with the manufacturing unit, it now aims to be an “integrated renewable energy company, with manufacturing, generation, and transmission business under one roof”.

Business Standard reported ReNew’s foray into power transmission and its plans to expand across the complete energy supply chain.

“India has grown into a big market for renewable energy. The time has come to reduce our dependence on imports and start domestic manufacturing of key components. ReNew Power is one of the biggest generators of renewable energy in India. The move to start manufacturing of solar cells and modules is a natural progression. I firmly believe atmanirbharta (self-reliance) in manufacturing will be key to the next phase of growth in the renewable energy sector,” said Sumant Sinha, chairman and managing director, ReNew Power.

In the statement, ReNew also said the manufacturing facility, apart from catering to its own generation business, will also meet the requirements of other clean energy companies in India.

“The domestic demand for solar cells and modules is expected to grow to 15 Gw next year. Domestic manufacturing of cells and modules within the country will help renewable energy players reduce their dependence on imports from China, which currently accounts for almost 80 per cent of the world’s module production. The plant will be equipped to meet export requirements as well,” the statement noted.

ReNew Power has a total installed capacity of 5.4 Gw of solar and wind power. It also has 4.6 Gw of renewable power capacity under construction. Apart from Goldman Sachs, ReNew is backed by equity investors such as Tokyo-based energy group JERA, Abu Dhabi Investment Authority, Canada Pension Plan Investment Board, and Global Environment Fund.