Tata Power Renewable Energy Ltd has said that it plans to invest ₹6,500 crore in building an ingot and wafer plant with a capacity of 10 GW. The decision has already been taken by the company’s board as part of its move towards establishing an upstream solar manufacturing plant.
It signals Tata’s move into an important component in the solar value chain from where the materials used in the manufacturing of solar cells and modules come from. This fits in well with India’s ambition of boosting domestic manufacturing through the Approved List of Models and Manufacturers initiative, which will eventually include wafer manufacturing by 2028.
Phased capacity addition and supply chain:
The ingot and wafer plant will have capacity addition in phases of 5 GW each, taking the total capacity to 10 GW. This move is meant to foster backward integration and cut down import dependence since China accounts for much of the global market share in terms of supply chains related to solar power generation.
Context and competitive environment of the industry:
In making this move, the Tata Group joins many other companies like the Adani Group, Reliance Industries, and ReNew Energy Global, who have also entered the realm of solar manufacturing.
Policies prevailing in the Indian market make it mandatory for manufacturers to ensure that there is an adequate wafer manufacturing capability together with the necessary ingot production capability as per requirements.
This move by the organization will enable it to capture profits from the entire value chain relating to solar manufacturing in India as demand grows.
