The Chinese solar equipment maker major, GCL-Poly Energy Holdings has shared plans to invest in India, attracted by the nation’s emerging green economy. As part of its India entry plan, GCL-Poly Energy Holdings Ltd is in talk with Subhash Chandra’s Essel Group to set up a solar module manufacturing facility. The Hong Kong-listed firm, which acquired bankrupt SunEdison’s solar material business last year, also plans to develop solar power projects in India. “GCL-Poly plans to set up a solar power project platform in India. They are also in talks with Essel Group for setting up a module manufacturing facility. It makes sense as one would be able to control costs,” according to internal official reports. India is working on a plan to make local manufacturing of solar power generation equipment competitive, attracting foreign investments.
Modules account for nearly 60% of a solar power project’s total cost and their prices fell by about 26% in 2016 alone. Most solar power developers in India have been sourcing solar modules and equipment from countries such as China where they are cheaper. New York-listed Trina Solar Ltd is the other Chinese firm that had indicated setting up solar equipment manufacturing plant in India. “I am in continuous dialogue with the manufacturers of solar equipment in India and I am happy to share with you that there is now quite a significant interest to set up solar manufacturing in India,” Piyush Goyal, Union minister for power, coal, mines and new and renewable energy, said last month. India’s demand for renewable energy is expected to grow sevenfold by 2035, according to the latest edition of BP Energy Outlook. This means the share of renewable energy in the country’s fuel mix will increase from 2% to 8% by 2035.