India is preparing an incentive scheme to build more than 10 GW of domestic polysilicon manufacturing capacity to reduce dependence on China for the raw material, the Union new and renewable energy secretary Santosh Kumar Sarangi said. The measure aims to push manufacturing deeper into the solar value chain by supporting production of polysilicon used to make ingots and wafers that are processed into solar cells and modules. The government has not disclosed the proposed outlay or timeline.

The support would complement an existing production linked incentive programme for high efficiency solar modules valued at Rs 240 billion (Rs 240 bn). Under that programme manufacturers were selected for eight point seven four GW in the first tranche and 39.6 GW in the second. India has built more than 213 GW of module manufacturing capacity and around 32 GW of solar cell capacity, and the government expects cell capacity to reach 100 GW within a year.

The push coincides with India crossing 300 GW of non fossil fuel based generation capacity by end July and remaining on course to meet a 500 GW target by 2030. Wind manufacturing has reached 24 GW with around 85 per cent indigenisation. The Solar Energy Corporation of India ran a round the clock renewable energy bid that provided 90 per cent assured power availability in every time block, with the discovered tariff at Rs 5.25 per unit.

Under the latest structure, solar will account for only 50 per cent of daytime supply, requiring developers to combine solar, wind and storage to maintain continuous availability. Developers were said to be confident that Rs 5.25 per unit would remain an inflation proof price for supplying electricity over 25 years. The secretary said cross border electricity trade will require compatible regulations as well as transmission lines, substations and undersea cables, and he highlighted the One Sun One World One Grid initiative and cooperation with neighbouring countries such as Bhutan.