1 April 2025
Outlook Business
Interviews
Sumant Sinha, chief executive, ReNew, tells Nandini Keshari that skilled workers in emerging technologies are
essential for the clean-energy transition. Edited excerpts
What has been ReNew’s
growth path and its role in India’s transition to clean energy?
ReNew has a portfolio of approximately 24,000MW, accounting for
both capacity in operation and in the pipeline. We have approximately 6,000MW
of operational solar energy projects.
The company recently completed one of India’s largest solar power
projects at a single site, in Jaisalmer.
What are the
challenges in executing large-scale solar projects?
Executing any large-scale infrastructure project is always a
challenge anywhere in the world. Having said that, executing solar-power
projects in India is much simpler compared to alternatives like wind-power
projects.
The main operational challenge over the last few years has been
that of imported equipment due to disrupted supply chains during Covid. But the
situation has vastly improved, including through the policy push by the
government to domestic equipment manufacturing.
What are the
challenges ReNew faces in acquiring land?
Typically, a large-scale utility project requires approximately 3
acres per MW. Thus, a 300MW project needs roughly over 900 acres.
Acquiring such a large, contiguous land parcel, especially near
grid substations, is a significant hurdle. Discontinuous land parcels increase
site infrastructure costs as well as operational expenses.
Land procurement is increasingly becoming more challenging due to
the sector’s rapid growth and the concentration of renewable energy potential
in specific regions.
Despite government
initiatives, Indian solar panels are costlier than Chinese ones. Why?
The cost disparity between made-in-India and Chinese solar panels
stems from a number of factors. Indian manufacturers are efficient in terms of
conversion of inputs to outputs. However, costs of inputs like land,
electricity, logistics and even finance are much lower in China due to systemic
reasons.
An ecosystem of ancillary suppliers also helps them procure inputs
in a cost-effective way. Chinese manufacturers have a longer operational
history and operate at much larger scale. Additionally, we are also witnessing
unfair trade practices due to strategic dumping of modules and cells from
China, fuelled by overcapacity.
EXPECT INDIAN INDUSTRY TO SWIFTLY CATCH UP WITH THE INTERNATIONAL
PLAYERS AS MANUFACTURING CAPABILITIES MATURE
What measures could
enhance the cost-competitiveness of Indian solar manufacturing?
A combination of government incentives and industry-led
initiatives is essential. Incentivising local production through central and
state support, such as capital expenditure subsidies, reduced electricity
costs, low-cost funding and readily available, affordable land and
infrastructure, is crucial.
The next phase of cost reduction will be driven by advancements in
process controls and staying ahead of the technological curve.
Is there a gap in the
technology and R&D of indigenously manufactured solar panels?
Technology is evolving rapidly in the clean-energy sector. Given
that Indian solar-manufacturing capacities are nascent, Indian producers
typically experience a 6-12-month delay in adopting cutting-edge,
high-efficiency technologies.
We are also experiencing export controls on machines that are used
for manufacturing. I expect the Indian industry to swiftly catch up with the
international players as India’s manufacturing capabilities mature and a wider
production-innovation ecosystem co-develops.
Has the basic customs
duty (BCD) on imported solar panels and the requirement to source from approved
domestic manufacturers impacted ReNew?
The introduction of the ALMM [Approved List of Models and
Manufacturers] has had a strong impact on the domestic module and cell
manufacturing, as it protects the nascent Indian industry.
By artificially lowering prices below market costs, the effect of
the BCD has been moderated. With a robust domestic manufacturing base emerging
now due to ALMM, market forces are driving prices, leading to a focus on cost
optimisation.
As India augments its
solar capacity, transmission is proving to be a major challenge.
India is one of the world leaders in planning and building out the
grid ahead of the deployment of utility scale projects, due to efforts of the
Central Electricity Authority and the Central Transmission Utility.
This is the prime reason why India has been able to put in place solar
and wind-power capacity at a swift pace. As India aims for 50-60GW of new
renewable energy capacities to be installed annually, the focus must be on
expanding the intra-state transmission grids. The government is cognisant of
this need.
Has ReNew encountered
difficulties in finding skilled workers?
If we look at the requirements of a rapid clean-energy transition,
there is a considerable skill gap in emerging technologies like green hydrogen,
energy storage and advanced grid integration.
Without skilled project managers who understand both the technical
and logistical aspects of the projects, we are risking both the quality and
efficiency of the delivery.
This is an industry-wide challenge. As we scale up, the supply of
trained people will need to catch up. A paucity of trained people is resulting
in high attrition rates, which raises costs in an industry that has intense
international competition.
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