Don’t miss the latest developments in business and finance.

Centre's solar energy tender to scale up Waaree Energies' 1.5 Gw capacity

Largest panel maker reported to have tied up with winner, Azure, of Centre's project for new manufacturing plant

solar
Shreya Jai New Delhi
Last Updated : Dec 13 2018 | 12:50 AM IST
Mumbai-based Waaree Energies, largest Indian manufacturer of solar energy panels, would get a major push if, as is reported, it partners Delhi-based Azure Power for the central government’s generation-linked manufacturing tender in the sector. The production base of 1.5 Gw could double. 

Company executives declined to comment on the reported joint venture or the bid. Sunil Rathi, director, said there were expansion plans but did not confirm the bid with Azure. 

In May, the Centre issued its first such tender for setting up a solar manufacturing plant, for aggregate manufacturing capacity of 5 Gw, linked with solar photo voltaic projects of 10 Gw capacity, on a ‘build-own-operate’ basis. The specifications were later lowered to 3 Gw of manufacturing capacity.

After multiple extensions, the NYSE-listed Azure Power was the sole company to bid last month, for setting up 600 Mw in manufacturing and 2,000 Mw of power projects.
 
Indian manufacturers in the solar sector have long complained about cheaper Chinese panels taking the lion’s share of the market. To restrict the import, the Directorate General of Trade Remedies imposed a 25 per cent safeguards duty on import from China and Malaysia. However, capacity utilisation of the domestic industry hasn’t seen a spurt.

“The past year, the sector faced its worst scenario in the past 10 years. There were not many tenders in 2017 and that had a relative impact in 2018. There is a demand-supply gap, pressure from China and reduction in the price of panels which pose a challenge,” said Rathi.

At the current rate of 26-28 cents per kwh, the price of panels has come down by 40 per cent in five years. Rathi believes these prices would now stabilise or increase slightly.

He said Indian manufacturers are scaling up and Waaree plans to double its capacity. 

“Going forward, larger manufacturers will survive. We are currently the largest, with 1.5 Gw of facility. We aim to add another 1-2 Gw, depending on the policy,” he said. Waaree expects close to 1 Gw of capacity to be deployed in the next quarter.

Waaree also has a solar products segment for a consumption base of 1-10 kw. Mostly water heating, water pumps and home lighting. It sells products through franchise and various online portals. “We have 200 partners across India. The segment is niche but has growth possibilities” Rathi said. 

The company recently ventured outside India and is the EPC (engineering, procurement and construction) contractor for a 60 Mw ground-mounted project in Vietnam. It currently has orders for panel supply worth 300 Mw and EPC contracts totalling 200 Mw. Last year, it installed or supplied solar panel capacity totalling 465 Mw.
Next Story