EQ In Exclusive Conversation With Mr.Ketan Vora, Managing Director & CEO at WAA Cables Pvt. Ltd.
EQ – Market, Technology and Policy Outlook 2023
What is the opportunity in India currently ,—in terms of projects in tender , pipeline etc..opportunities in manufacturing etc .?
Opportunity in Renewable energy sector: The opportunity in India for Renewable sector projects and other alliedbusinesses like Inverter, Battery, Pump – Motor, cables and wires, Thermal etc and it’s manufacturing is huge right now asIndia’s energy demand is expected to accelerate faster than any other country in the coming decades due to its sheer size and enormous potential for growth and development.
Therefore, it is imperative that most of this new energy demand is met by low-carbon, renewable sources. India’s announcement that it intends to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change.
With increased support from the Government inpolicies and economics – allocation of Rs. 19,500 Crore (US$2.57 billion) for a PLI scheme to boost manufacturing of high –efficiency solar modules. , this sector has become attractive from an investors perspective and working towards achieving goal to achieve net zero carbon emission.
Opportunity in Cables & wires Industry:
The domestic cables and wires industry has registered robust growth over the last five years led by the government’s focus on providing power to all and gradual pickup from the housing market. The wire and cables market in India has the potential to grow by USD 1.65 billion during 2021-2025, and the market’s growth momentum will accelerate at a CAGR of 3.80%. The development of infrastructural projects by the government and investment is driving the growth of the wire and cable market in India.
What type of market do you anticipate in 2023 in terms of Utility / C&I, Residential?
Decarbonisation efforts have taken centre stage in India since our Hon’ble Prime Minister announced India’s Net Zero goals by 2070. India’s leadership of the International Solar Alliance has also brought considerable focus on solar energy. All this has resulted in a significant addition of Renewable Energy (RE) capacity in India in the last few years. However, as far as solar energy is concerned, the majority of the capacity addition has been in the utility-scale segment – large plants that supply green energy directly to the grid.
The Utility, C&I and residential sector struggled in 2022 due to rise in solar module import prices, and demand, which caused delay in projects. However, as government has introduced new policies to promote domestic manufacturing, this industry is hopeful for strong rebound in 2023. A key expectation in 2023 is from the Commercial and Industrial sector (C&I) sector. The sector is largely expected to pick a significant part of the slack from the utility scale projects that faced challenges of pricingor otheraspects.
As Commercial and Industrial (C&I) customers consume close to 50% of the power produced in India, thereby being the single largest segment. There are some major reasons driving C&I segment, like-
1. More awareness in the industrial segment about the environment impact of their operations and companies have started taking steps towards incorporating sustainable methods.
2. Fall in the tariffs of renewable energy, making it more clear for those industries which are energy intensive, to go for renewable energy as it helps them to save larger amount on their electricity bill.
3. Also, technological advancement and business model also helps in growth.
4. As India aims to increase its non-fossil fuel based power capacity to 50% of total capacity by 2030, more RE capacity will get added.
Which region or states looks most promising to you for 2023?
In India, several regions and states have shown significant potential and promise in the renewal energy sector. However, this Industry is dynamic and its development is subject to various factors such as government policies, infrastructure development, and solar resource availability.The top 6 states for installed renewable capacity in India are Rajasthan, Gujarat, Maharashtra, Karnataka, Tamil Nadu and Telangana.
The reason behind is their climate, state government initiative and improved policies, State and Central government’s approved budget and many projects for enormous capacity of solar energy production.
Rajasthan with 16.4 GW Installed Capacity, has the highest solar power generation potential of any state in the country. Rajasthan plans to install 30,000 MW of solar energy capacity by 2025. Whereas, Gujarat with 8.8 GW Installed capacity, has recently identified 1,00,000 hectares of wasteland in the Kutch district to build the world’s largest renewable energy park with a 30,000 MW capacity. This project would be a mix of solar and wind power. Maharashtra withInstalled Capacity 16 GW, has recently signed MoUs to add projects to generate 5,220 MW of renewable energy for Rs 41,000 crore
If we look at Southern India, Karnataka with 8.1 GW Installed Capacity,is the third largest producer of solar energy in India. Karnataka has 1,000 MW of projects in the queue. Tamilnadu having 6.5 GW Installed Capacity-has immense renewable energy potential, with access to sources such as wind, solar, biomass, biogas, hydropower, etc.The Tamil Nadu Generation and Distribution Corporation is planning to install solar power plants with a total capacity of 20,000 MW by 2030 and also planning to develop district level solar parks. India’s southernmost state Telangana with 4.6 GW installed capacity, ranks fifth in terms of solar power generation capacity. The state also chose a distributed solar installation plan, which has resulted in savings of almost 450 crores. The state is also home to the largest floating solar PV plant in India with a 100 MW capacity.
How much manufacturing capacity India has in terms of Solar Modules, Inverters, Cells etc and what’s your anticipation in capacity addition in 2023?
India has solar cell manufacturing capacity of approximately 4.7 GW as of September 2022. This is expected to increase by seven fold by the end of CY 2024.
India’s solar photovoltaic (PV) module manufacturing capacity exceeded 39 GW at the end of September 2022 and is expected to reach around 110 gigawatts (GW) by the financial year (FY) 2026, which will make the country self-sufficient.
As far as anticipation in manufacturing capacity addition in 2023, the positive market developments in the first months of 2023 promise another solar boom year, expected to result in 341 GW of newly-added solar to the grid, by the end of the year – equal to 43% growth. India’s cumulative module manufacturing nameplate capacity has more than doubled from 18 GW in March 2022 to 38 GW in March 2023. Compared to FY2022, Indian PV exports (by value) have already risen by more than 5x in FY2023. Between 2020 and 2023, the nameplate capacity for both cells and modules more than doubled in India. We estimate that the operational capacity for both cells and modules is between 50-60% for most manufacturers.
What kind of growth do you see coming in the residential sector demand ?
Power consumption grew 9.5 per cent to 1,503.65 billion units year-on-year in 2022-23, mainly due to higher demand amid a rise in economic activities, showed government data.
India has emerged as a major player in the global energy market, with the country ranking third in the world for primary energy consumption, according to the India Energy Outlook 2021 report by the International Energy Agency (IEA).
The residential sector has been a significant driver of solar energy demand in many countries, and it is expected to continue experiencing growth in the coming years. It can be influenced by factors specific to each market, including local economic conditions, utility regulations, consumer preferences, and government support. Continued innovation, favourable policies, and public awareness will play significant roles in shaping the growth of the residential sector’s demand for solar energy.
