How To Revive India's Solar Sector Post Covid

The renewable energy industry needs a plan to mitigate the effects of reduced imports from China and increasing cash outflows

- Neeraj Kuldeep/ Harsha V Rao

Exactly five days before the nationwide lockdown, the Ministry of New and Renewable Energy (MNRE) had announced that as much as 31 GW of solar capacity was at different stages of tendering, and an additional 21 GW under deployment. About 70,000 people are employed in the construction activities of this pipeline alone. The sector was ready to ramp up efforts to achieve the ambitious but achievable 100-GW target. However, Covid-19 has set in motion a chain of events which will have both immediate and long-term impacts on our solar ambitions. A strategic revival plan is critical for high growth post the pandemic.

Even before the virus reached India, module and cell importers had started feeling the effects of the shutdown in China. Imports declined by about 70 per cent in January 2020 compared to January 2019. India relies heavily on China, nearly 80 per cent, for its module and cell requirement. The 3 GW of domestic module manufacturing capacity is insufficient to support domestic demand and is also dependent on Chinese input material. While exports from China have resumed, the domestic situation in India remains uncertain.

Mounting debt

Recent MNRE announcements on