Page 16 - Edelweiss India Conference 2022 FLIPBOOK
P. 16
THE NEW EDGE
Integrated PV plant: Key to cut imports
India is the lowest-cost producer of PV modules (8% below even China) given
locally abundant ingredients: sand and engineering skills. Notably, India is
already the third-largest silicon (from sand) producer, which is the second-
most abundant element (26% of earth’s crust versus 0.002% for lithium).
India itself is the third-largest market (6% global share) for PV modules and
the lowest cost, and yet imports three–fourths of its PV requirements.
Considering PV imports from China are on the rise, the country’s reliance
on imports from other countries – and China – would reduce dramatically
as integrated PV capacity in India comes on stream spurred by business
India is the lowest-cost
producer of PV modules imperatives and government-push.
(8% below even China)
given locally abundant China dominates global solar modules capacity
ingredients: sand and
engineering skills Global solar module capacity stood at 320GW in 2020 (+46% YoY, 218GW in 2019), of which
China constitutes 77%. China’s capacity increased 59% YoY to 245GW in 2020 from 155GW
in 2019.
China solar capacity (77% of global) increased 59% in 2020
350
320
300 245
(Solar module capacity in GW) 200 155 218
250
150
100
50
0
2019 2020
China capacity Global capacity
Source: Edelweiss Research, PV Info
Currently, India is heavily reliant on imports from China given low manufacturing capacity
USD15bn worth of solar PV cells and modules, of which USD12bn worth of imports came
from China. The value of imports of solar projects components in FY20 stood around
USD2.5bn.
14 Edelweiss Securities Limited