Independent power producer ReNew Power has announced an increase in its module manufacturing capacity to 6 GW from a previously planned 4 GW. Planned capital expenditures for component manufacturing are expected to be $325 million to $350 million. An incremental capex of $140 million to $150 million could cost the company about 3% to 4% of the company's three-year capex forecast.
Currently India has only about 3 GW of AC equivalent to a commercially viable module capacity. This is the case even if government targets imply that around 25 to 35 gigawatts of new solar projects need to be developed each year.
Most of the announced new module manufacturing capabilities will not come into production until around 2024 or 2025. And it seems that a large part is used for personal use, and the rest can be exported to foreign markets for sale at prices much higher than in India.
The company has plans to operate a 2 GW battery manufacturing plant by the second quarter of 2023.
In April, global trading and investment firm Mitsui & Co. acquired a 49% stake in ReNew Power's 400-megawatt all-weather (RTC) utility-scale renewable energy project. The project includes three newly constructed wind farms with a combined capacity of 900 MW and a 400 MW solar project with a battery capacity of 100 MWh. The projects are spread across the states of Rajasthan, Karnataka and Maharashtra and are being developed by ReNew Surya Roshni, a subsidiary of ReNew Power.
ReNew Power posted total revenue of Rs 1,761 crore in the fourth quarter of fiscal 2022, up from a year earlier.
