Addressing the Challenges of RE Manufacturing in India: Horizon 2032 An Initiative Supported by Addressing the Challenges of RE Manufacturing in India: Horizon 2032 CSTEP WISE Sharath Rao, Senior Research Scientist Rajendra Kharul , Director and Head, Centre for Wind Power Bhupesh Verma, Research Analyst Suhas Tendulkar, Head, Centre for Climate Change and Sustainability Policy Ritesh Jain, Research Economist Arun Mehta, Senior Research Associate, Centre for Wind Power Varun Jyothiprakash, Consultant Chandan Kumar, Research Associate, Centre for Wind Power Gaurav Jain, Research Associate, Centre for Wind Power Salil Joglekar,Research Associate, Centre for Wind Power Disclaimer The views expressed in this document are based on the collection and analysis of the data/information by Centre for Study of Science, Technology and Policy (CSTEP) and World Institute for Sustainable Energy (WISE). The views do not necessarily reflect those of Shakti Sustainable Energy Foundation. The Foundation does not accept any responsibility for the consequences of the use of the information in this document. Information contained in this publication is reliable and deemed correct to the knowledge of CSTEP and WISE. Due care and caution has been taken by CSTEP and WISE in compilation of data from various primary and secondary resources. CSTEP and WISE shall not have any liability whatsoever, including financial, at any time in future because of the use of information in this report. © Copyright 2015 CSTEP and WISE No part of this report may be disseminated or reproduced in any form (electronic or mechanical) without permission from CSTEP and WISE. Center for Study of Science, Technology and World Institute of Sustainable Energy Policy Plot No.44, Hindustan Estates, Road No. 2, 10th Cross, Papanna Layout, Mayura Street Kalyani Nagar, Pune 411 006, Nagashettyhalli, RMV II Stage, Maharashtra, India. Bangalore-560094 Tel: + 91-20-26613832 Karnataka, India Fax: +91-20-26611438 Tel: +91 (80) 6690-2500 Email: [email protected] Email: [email protected] Website: www.wisein.org Website: www.cstep.in Acknowledgements CSTEP and WISE are grateful to all the experts and specialists for providing useful inputs and insights during the preparation and at various stages of this report. Special thanks are due to Shri Dilip Nigam, Director - Ministry of New and Renewable Energy, Shri Ashvini Kumar, MD (I/C) and Director (Solar), Solar Energy Corporation of India and Shri Gaurav Dave, Fmr. Chief (Joint Secretary), National Manufacturing Competitiveness Council for their useful insights and suggestions during the inception stage and drafting of the report. The project team would also like to acknowledge the support of officials from various Ministries and Departments of Government of India, particularly Ministry of New and Renewable Energy, Department of Industrial Policy and Promotion, Department of Electronics and Information Technology, Directorate General of Foreign Trade and Directorate General of Anti Dumping and National Manufacturing Competitiveness Council. Further, we would like to thank industry professionals and experts in providing key inputs at various stages of the study. Special thanks are due to Mr. A.S Karanth (Executive Advisor, DEIF India), Mr. Chintan Shah (President and Head, Strategic Business Development), Mr. Hemkant Limaye (Commercial Director, LM Wind), Mr. K Bharathy (CEO, Windar Renewable Energy Pvt. Ltd.), Dr. Omprakash G Kulkarni (Scientist, Advisor, Indian Institute of Science), Mr. Ramesh Kymal (Managing Director, Gamesa Wind Turbines Ltd), Mr. R Bakul (President, Suzlon Energy Ltd), Mr. T. Pradeep Kumar (CEO, Kenersys Wind Energy), Mr. G. V. Balaram (MD, Karnataka Renewable Energy Development Limited), Dr. Arul Shanmugasundram (Executive VP (Projects) and CTO, Tata Power Solar Systems Ltd.), Mr. Rajesh Bhat (MD, Juwi India Renewable Energies Pvt. Ltd) and Mr. Srinath .T (Technical Director, EMMVEE Solar) for their valuable inputs and validation of the findings of this study. In addition, we would like to profoundly thank Dr. V. S. Arunachalam (Chairman, CSTEP), Dr. Anshu Bhardwaj (Executive Director, CSTEP) and Mr. G. M. Pillai (Director General, WISE), whose insights and support gave the much-needed depth of perspective to the analysis and recommendations. Thanks are also due to various staff members of CSTEP and WISE who directly or indirectly contributed towards the study by means of organizing field trips and workshops, financial reporting, publishing and dissemination activities of the project. Finally, a special thanks to Shakti Sustainable Energy Foundation (SSEF) for supporting this important project. In particular, we would like to thank Mr. Deepak Gupta, Senior Programme Manager (Power) and Ms. Disha Agrawal, Program Associate (Renewable Energy) for their patience and for providing valuable feedback and suggesting crucial course corrections at different phase of research. Table of Contents 1 INTRODUCTION ........................................................................................................................................................... 7 1.1 RENEWABLE GENERATION IN INDIA ........................................................................................................................................ 10 2 RE MANUFACTURING SUPPLY CHAIN IN INDIA -OVERVIEW ...................................................................... 13 2.1 INDIA’S WIND AND SOLAR MARKET ........................................................................................................................................ 13 2.2 WIND POWER ............................................................................................................................................................................... 14 2.2.1 Technology Trends in Onshore Wind ............................................................................................................................. 16 2.3 SOLAR POWER .............................................................................................................................................................................. 18 2.4 WIND AND SOLAR MANUFACTURING SUPPLY CHAIN IN INDIA ........................................................................................... 21 2.4.1 Wind OEM Overview .............................................................................................................................................................. 22 2.4.2 Cost /Price of WTG Components ...................................................................................................................................... 28 2.4.3 Import and Export Status of the Indian Wind Industry ......................................................................................... 29 2.4.4 Solar OEM Overview .............................................................................................................................................................. 30 2.4.5 Solar PV ....................................................................................................................................................................................... 32 2.4.6 CSP ................................................................................................................................................................................................. 37 3 RE MANUFACTURING: CRITICAL COMPONENTS AND SUPPLY CHAIN CHALLENGES .......................... 44 3.1 METHODOLOGY ............................................................................................................................................................................ 44 3.1.1 Wind .............................................................................................................................................................................................. 45 3.1.2 Solar .............................................................................................................................................................................................. 46 3.2 OVERVIEW OF CRITICAL COMPONENTS ................................................................................................................................... 48 3.2.1 Wind .............................................................................................................................................................................................. 49 3.2.2 Solar PV ....................................................................................................................................................................................... 53 3.2.3 Concentrated Solar Power .................................................................................................................................................. 57 3.2.4 Thermal Storage System ...................................................................................................................................................... 65 3.3 SUPPLY CHAIN CHALLENGES ..................................................................................................................................................... 69 3.3.1 Wind .............................................................................................................................................................................................. 70 3.3.2 Solar .............................................................................................................................................................................................