Solar Manufacturing Push: Govt Weighs PLI For Local Polysilicon Production, Pg17

Key Highlights:

• The Indian government is planning a Production-Linked Incentive (PLI) scheme to boost domestic polysilicon manufacturing.
• India currently relies entirely on imports for polysilicon, a crucial raw material for solar photovoltaic (PV) modules.
• The new scheme aims to deepen India’s solar manufacturing value chain and reduce import dependence.
• Santosh Kumar Sarangi, Secretary at Ministry of New and Renewable Energy (MNRE), announced the initiative.
• India's domestic solar cell manufacturing capacity is projected to reach 100 gigawatts (GW) within a year, up from 32 GW.

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Detailed Insights:

• Polysilicon represents the upstream segment in the solar manufacturing value chain, processed into ingots, wafers, cells, and finally modules.
• An existing PLI scheme for solar PV modules covers both upstream and downstream segments, but progress in polysilicon, ingot, and wafer production has been slow.
• The government views polysilicon manufacturing as an independent chemical and refining industry, with applications also in the semiconductor sector.
• The electricity tariff for Round-the-Clock Renewable Energy (RE-RTC) is becoming competitive, with a recent tender by Solar Energy Corporation of India Limited (SECI) discovering a tariff of Rs 5.25 per unit.
• Cheaper renewable energy is helping Distribution Companies (DISCOMs) reduce their average power purchase costs, which had previously been increasing rapidly.
• The country's ingot and wafer manufacturing capacity is expected to reach 80 GW by June 2028, addressing a key gap in the domestic value chain.

Scientific/Technical Concepts Involved:

• Polysilicon: A high-purity form of silicon, essential as a raw material for solar cells and semiconductor devices.
• Solar Photovoltaic (PV) Modules: Devices that convert sunlight directly into electricity using semiconductor materials, typically silicon.
• Production-Linked Incentive (PLI) Scheme: A government initiative offering incentives on incremental sales from products manufactured in domestic units.
• Round-the-Clock Renewable Energy (RE-RTC): Renewable energy projects designed to provide continuous power supply, often through a combination of solar, wind, and energy storage.