India to Emerge as The Second-Largest Producer of Solar Energy by 2025
“Looking outside China, India is forecasted to overtake Southeast Asia as the second-largest module production region by 2025, which will be driven by India’s strong PLI incentives,” Wood Mackenzie, a global consultancy firm for renewables, energy, and natural resources.
India is poised to become the world’s second-largest producer of solar modules by 2025, overtaking Southeast Asia, according to a report by Wood Mackenzie. With a focus on meeting the rising demand for solar power, the country is set to cement its position as a key player in the global renewable energy market. This development is a significant milestone for India’s solar energy industry and reinforces its commitment to sustainable energy.
In 2023, China is expected to have invested over $130 billion in the solar industry. As a result, China will hold more than 80% of the world’s polysilicon, wafer, cell, and module manufacturing capacity from 2023 to 2026, according to a consultancy. This information implies that China will be a dominant player in the solar industry for the next few years.
“The US and India have announced more than 200 gigawatts (GW) of planned module capacity since 2022, driven by the Inflation Reduction Act (IRA) in the US and the Production Linked Incentive (PLI) in India,” it added.
India’s ambition to become a global leader in renewable energy has been boosted by the Production Linked Incentive (PLI) scheme. The International Energy Agency (IEA) recently reported that the project pipeline under the PLI scheme suggests that India’s domestic production capacity can surpass 70 GW by 2027. As the world’s fastest-growing renewable energy market, India is offering around USD 2.5 billion in subsidies under the PLI scheme for expanding solar PV module manufacturing capacity, which is expected to contribute significantly to the country’s renewable energy goals.
ICRA, a credit rating agency, recently reported that they anticipate India’s solar photovoltaic (PV) module manufacturing capacity to increase to over 60 GW by 2025. This represents a significant increase from the current capacity of around 37 GW. This optimistic forecast is based on the industry’s efforts to enhance backward integration into cell and wafer manufacturing. The report highlights that the industry is expected to achieve this milestone by focusing on technology advancement, R&D investments, and government incentives.
In recent years, India’s solar industry has experienced significant growth. The government’s efforts to promote clean energy and reduce carbon emissions have been instrumental in driving this growth. These initiatives are expected to encourage more investments in the sector, leading to a sustainable future.
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