In a significant move to seize opportunities in the energy transition sector, billionaire Gautam Adani's group is gearing up to establish an impressive 10 GW integrated solar manufacturing capacity by 2027, according to sources close to the company.
The current solar manufacturing capacity of the Adani group stands at 4 GW, showcasing a robust commitment to expand its footprint in the renewable energy domain. The ambitious plan aligns with the broader trend of increasing focus on sustainable and clean energy solutions.
Adani Solar, a key player in the solar manufacturing landscape, has a confirmed order book exceeding 3,000 MW for exports to be fulfilled over the next 15 months. To facilitate this expansion, the group recently secured $394 million for solar manufacturing from prestigious financial institutions, Barclays PLC and Deutsche Banks AG, utilizing a trade finance facility.
Despite India's commendable growth in solar energy generation, surging from 2.63 GW in March 2014 to an impressive 71.10 GW in July 2023, the manufacturing ecosystem has struggled to keep pace. Recognizing this gap, the government implemented a two-pronged strategy, employing both trade and non-trade barriers.
Utilizing tools like safeguard duty, an approved list of module manufacturers (ALMM), and a production-linked incentive (PLI) scheme, the government aimed to invigorate the solar manufacturing sector. These initiatives provided the necessary impetus for private entities, including the Adani group, to intensify their investments in solar manufacturing.
Building on the success of Adani Green Energy (AGEL), the group's listed renewable energy generation entity, Adani Enterprises (AEL) strategically entered the solar PV manufacturing sector in 2015 with the inception of Adani Solar. Manufacturing operations commenced in 2016, equipped with a robust 1.2 GW cell and module manufacturing capacity.
Adani's visionary approach to significantly scale up solar manufacturing aligns with India's broader commitment to clean energy and self-reliance in the renewable sector.
The move not only showcases the group's dedication to sustainability but also positions them as a major player in India's evolving energy landscape.
India's solar energy generation capacity has increased from 2.63 GW in March 2014 to 71.10 GW in July 2023.
The government has imposed safeguard duties on solar imports and launched a PLI scheme to boost Indian solar manufacturing.
The Adani group is one of the few private players that have made significant investments in solar manufacturing in India.
The Adani group's Adani Solar arm commenced manufacturing in 2016, with a 1.2 GW cell and module manufacturing capacity.