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Avaada Group is currently one of India's fastest-growing renewable energy companies contributing majorly to India’s solar energy market. The group is also into manufacturing of solar cell modules. In this interaction with Rakesh Rao, Vineet Mittal, Chairman, Avaada Group, explains the relevance of solar energy to achieve India’s renewable energy goals and how Avaada is playing a role of an enabler in this green journey.
How is Avaada Group tapping the potential of the renewable energy sector?
Given the favourable geographical conditions, abundance of natural resources and the right policies, India has the potential to lead the renewable energy sector globally. India has so far installed 66% of its total renewable energy installation of 175 GW. Solar structures represented 89% of all clean energy capacity installations this year. Wind installations only rose by 7% compared to last year and comprised 10% of all new renewable energy (RE) installations so far this year.
In the country's energy transition, the Avaada group will play an imperative role. By 2030, the group intends to have 30,000 MW of installed renewable energy capacity, and to develop solar manufacturing units and green ammonia production. In the past 15 months, we are probably the only company that has commissioned 2 GW in Asia except China, despite economic-wreaking external conditions, the ongoing Corona virus, and the Russia-Ukraine war. By this year, we will be a 4,000 MW operating assets company. In addition, we have a pipeline of PPA of 11 GW of renewable energy projects which we are executing.
We are also looking at more than a GW wind project in the next three years. We have already commissioned 2000 megawatts in the past 15 months. We aim to make India the global hub for renewable energy with the plan to set up a 5GW cell-to-module factory which will be commissioned fully by 2024.
We recently commissioned the world’s largest single location solar plant, of size 1.25 GW in Bikaner. We will announce a 3 GW plant by the end of this year. We are setting up a 5 GW sand-to-molecule line, which will be operational by next year. Currently, we have 11 GW of renewable energy projects in the pipeline, and our goal is to become a 30 GW company by 2030. We will be an integrated green molecule company.
In the space of green ammonia, we signed a Memorandum of Understanding with the Department of Industries and Commerce, Government of Rajasthan. This is to set up a green ammonia facility and a renewable energy power plant in Kota, Rajasthan. We are investing Rs 40,000 crore in this while also providing direct employment opportunities to about 3,500 people and indirect jobs to over 10,500 people. This will be the single largest project with an installed capacity of 3000 MW and by April 2026 we will have the first million tonnes operational.
Recently, Avaada Group tied up with Airtouch Solar for robotic cleaning of solar modules. What are the advantages of robotic cleaning?
Robotic cleaning helps to dry the dust from the panels to ensure maximum absorption of sunlight for maximum output. Our 25-year agreement with Airtouch entails supply, erection, testing, commissioning, operation and maintenance of these robotic cleaning systems at Avaada solar farms at Bhadla in Rajasthan and Pangaon and Damangaon in Maharashtra. Robotic cleaning will be able to save 80 to 100 K liters of water / MW annually, besides experiencing significant gains in energy production.
The sensor-free technology used in each deployed robot is connected to the company’s IoT (Internet of Things) system so the process can be programmed and controlled remotely by us, allowing for real-time adjustments based on forecasted weather, wind speed and rainfall. The system is also self-sustaining and rechargeable during sleep mode, thereby, neither compromising on its runtime nor letting dust or dirt settle due to its air blower and micro-fiber towel cleaning solutions, just like we do in our homes to clean dirty surfaces, especially glass-based furniture.
India aims to achieve a 500 GW target for renewable energy by 2030. What are key pitfalls in this journey? How can we overcome them?
India’s roadmap to achieve a 500 GW target of renewable energy by 2030, will only be possible with solar that will contribute about 60 percent to its total capacity. Every new industry has teething issues which will be resolved over due course of time with the intervention of government and the right policies supporting the solar industry.
Right now, there are multiple challenges, including ready infrastructure, a skilled workforce, and high production costs. India used to import these modules. It is supported by the PLI scheme. It will augment the manufacturing of modules in areas with ample sunlight, without disturbing the living habitat and protecting the forests at the same time.
The support for the growth of renewable energy for green and clean energies to fight climate issues and bring down emissions in developing nations needs support in terms of finances from the developed nations, The United Nations Climate Summit in Copenhagen, where rich nations made a significant pledge and promised to channel $100 billion a year to less wealthy nations by 2020 to help them adapt to climate change and mitigate further rises in temperature, is yet to be fulfilled. Only if the developed nations abide by their promise of providing $100 billion as climate aid to the developing nations and also top it up with open-source or free transfer of technology, all developing countries (including India) can benefit from it and the global transition towards clean energy.
How is Avaada Group helping the solar energy industry to achieve this ambitious target?
Avaada Group's contribution to India’s solar energy target started almost a decade ago. Avaada Energy, established in 2017 and the flagship company of the Avaada Group, is currently one of India's fastest-growing renewable energy companies. It has commissioned several renewable energy projects across nine Indian states. Avaada Energy has consistently been a top performer in the country’s renewable energy domain, which was proved yet again during the pandemic. Despite supply chain disruptions caused by the Covid-19 pandemic, the company managed to commission the world's largest single location solar power plant having an installed capacity of 1.25 GW at Bikaner in Rajasthan. We plan to announce a 3 GW plant by the end of this year. In the last 15 months, we have installed 2000 MW of solar projects across different states in India. We are targeting to become a 30 GW company by 2030.
Avaada is also into manufacturing of solar cell modules and has a 4 GW manufacturing capacity which is to be operationalised this year. With support from the government that has come up with a storage policy which will be integral to providing grid stability, we have a 350 GW grid and are able to accommodate a lot of this variability.
In terms of manufacturing, we will be in the 10 GW range from sand to solar production. We are aiming to have 30,000 MW of solar, wind, pumped hydro and storage plants operational in India by then. In addition, we are aiming to have a million tonnes of green ammonia and hydrogen plants in other parts of the world too.
What are the key challenges facing the solar PV module manufacturers today?
Solar PV module manufacturing is gaining momentum in India considering the Atmanibharta and Make in India movement. Today, manufacturing PV modules involves investment and needs to be funded by government agencies. The government promotes R&D activities by establishing research centers and funding them, but the installation, maintenance and upgradation of this technology come at a higher cost. This call for additional funding and needs support from foreign investors for production of the panels for renewable energy generation for cleaner fuels.
Has the PLI scheme, announced by the GoI, benefitting the solar module manufacturing industry?
India is moving rapidly on its self-chosen path of rapid energy transition – to sustain the pace, it is critical the transition comes on a strong foundation of self-reliance. We applaud and welcome the Cabinet's approval of the Trace-II of Production Linked Incentive Scheme on the 'National programme on High-Efficiency Solar PV Modules with an allocation of Rs 19,500 crore. The Scheme was long-awaited, and on behalf of the industry, I would like to congratulate the Government of India for achieving another landmark milestone in its journey towards energy transition.
India's renewable energy sector is heavily dependent on China for capital equipment. Despite having a large market, domestic industry lagged due to a lack of eco-system and insufficient subsidies. However, the PLI scheme, which originated from the Hon'ble Indian Prime Minister's ambitious program of 'Atmanirbhar Bharat', will have a transformational impact. The scheme is expected to generate direct investment of around Rs. 94,000 crores and prompt direct employment of about 1,95,000 and indirect employment of around 7,80,000 persons, which will significantly boost our economy's growth.
We appreciate the Government of India for taking such positive and concrete steps towards achieving its net-zero target and commitment to the Panchamrit strategy, or "five elixirs," to reach the emissions target by 2070. We are confident that with the right policies in place and the abundance of resources along with the favourable geographical conditions, the country has the potential to become a low-cost producer of green technologies, and this proposal brings us closer to our collective climate goals.
To encourage local solar PV cells and modules manufacturing, the Government of India had introduced import duties on solar cells and PV modules. What is your view on this move?
We believe that the imposition of import duties on solar cells and solar modules is a move to reduce India’s dependence on other countries for its energy needs. There is a need to reduce the need for imports and create a photovoltaic equipment manufacturing industry in India. This will not only make us Atmanirbhar, but also an active and leading participant in the global supply chain.
In fact, this import duty will make it easier to invest in Indian clean power. The industry was eagerly waiting for these reforms to increase its competitiveness and take the growth of the sector to the next level and become self-reliant in renewable energy, module manufacturing and battery storage.
What are your growth plans for Avaada Group?
We are looking to be a 30 GW of installed renewable energy capacity company by 2030. We have 10 GW plus power purchase agreements in place. We have multiple projects which we are developing currently, for our own ammonia business plus for different commercial and industrial (C&I) customers, as well as the provincial and federal governments.
As of today, over 25% of our business is in the C & I segment where we work with a lot of marquee clients. However, our business plan will keep revising if we have high quality customers who are willing to give us commercially viable power purchase agreements.
We are also in the process of setting up a 5GW cell-to-module factory that we intend to commission fully by 2024. Seven years from now, our role will be to sell more molecules over electrons. Green molecules are now a globally tradable commodity. We will be meeting our Prime Minister's vision that we should be an energy exporter rather than an energy importer.
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INDUSTRIAL PRODUCTS FINDER (IPF) is India’s only industrial product portal. Referred to as the ‘Bible’ of the manufacturing sector in India,
INDUSTRIAL PRODUCTS FINDER (IPF) is India’s only industrial product portal. Referred to as the ‘Bible’ of the manufacturing sector in India,
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