Greentech Lead India: India has devised a very ambitious plan to promote solar energy in the country and create a solar energy hub. However, there are a few issues that need to be sorted to achieve this target, says Chaitra Narayan, associate director, Chemicals, Materials & Foods Practice, Frost & Sullivan.
Please read Greentech Lead’s interaction with Narayan below:
Who are the leading solar cell materials and chemicals manufacturers in India? Any ranking available? How much do they contribute to the overall capacity installed in India?
Currently, there are no domestic manufacturers of solar cell/module chemicals and materials in India and all the products are imported. Although companies like DuPont are present in India, manufacturing has still not commenced in India. Off late, a few Indian companies such as Dugar Group, The Metal Powder Company Limited (MEPCO) have shown some interest in certain products such as encapsulants and metal paste.
What is the contribution of Chinese companies to Indian solar cell materials and chemicals market?
Chinese companies supply almost all the chemicals and materials such as Wet Process Chemicals, Metal Paste, front and backsheets and EVA encapsulants to India. This is in addition to the finished cells and modules that they already supply to the Indian market. The need for very high quality products and tie-ups with system manufacturers has made global majors the leading suppliers for solar cell chemicals such as polysilicon, metal paste and wet process chemicals. However, with the smaller module manufacturers, products from Chinese companies are quite popular.
What are the other challenges (apart from Chinese competition) faced by Indian solar cell materials manufacturers?
One of the major challenges India is facing is in terms of concrete government policies; the massive success of the solar industry in China can be attributed to the government policies that fostered growth. Additionally, issues such as lack of clarity on implementation of these policies, lack of strong subsidy, issues with constant and regular availability of power for production, raw material issues (fluorspar for backsheet) and lower customer base are a few major hurdles to indigenization of chemicals and materials used in PV solar cells and modules.
Do you know any serious R&D efforts in India aimed at reducing the cost of module manufacturing?
The unique local environment of India dictates that R&D activity in India should be tailor-made to meet its specific demand. Though the government has initiated policies and mandates to bolster R&D in India, due to lack of clarity no substantial activity has been witnessed in this area. Research activity has been majorly restricted to universities and research organizations with collaboration/support from abroad.
Any estimates on foreign investments in solar cell materials and chemical manufacturing sector in India over the last two years?
India has attracted FDI inflow of approximately USD 1.75 billion over the last 3 years (till 2012) for the entire renewable energy sector with the largest chunk going to wind energy. The indigenization drive for solar modules and cells has restricted participation from foreign players.
How long it will take for India to become a major solar power?
India has devised a very ambitious plan to promote solar energy in the country and create a solar energy hub. However, there are a few issues that need to be sorted to achieve this target. First and foremost, concrete policies with a clear roadmap on implementation needs to be created. It is essential that the policy strikes a balance between driving indigenization and ensuring India is not missing out on break-through technologies.
Critical aspects such as need for long-term energy security, global warming, increasing population and urbanization, promoting long-term players rather than short-term gamblers need to be factored in while creating these policies. Furthermore, fiscal incentives such as subsidy and tax breaks should be brought in to promote growth. Currently, it is possible to generate solar power at INR 9-10 per unit against INR 14-15 per unit for diesel, which is expected to further increase with increasing crude oil prices. With the current potential and favorable government policies, India is expected to become a major player in the solar market in the coming 5-10 years.
Rajani Baburajan