From the industrial belts of Gujarat to the outskirts of Bengaluru, factories are churning out solar panels by the millions, their glassy surfaces stacked and shipped across the country. Utility developers, homeowners and farmers are lapping them up, feeding the surge in India’s clean energy push.
Backed by government incentives and trade protections, Indian solar equipment makers such as Adani Enterprises, Tata Power, Renew Photovoltaics, Waaree Energies and Premier Energies have raced to expand solar module capacity to help meet the country’s ambitious target of installing about 300GW of solar energy by 2030. Reliance Industries also announced extensive plans to build capacity in the space.
But the early boom is showing cracks.
Initial public offerings (IPOs) of Indian solar equipment makers have previously been heavily in demand, but the latest listing of Emmvee Photovoltaic Power ended up with mixed demand. The retail and qualified institutional buyer (QIB) portions were fully booked, but the non-institutional investor (NII) portion remained significantly undersubscribed at 30% in November.
This shift may be due to the large number of clean technology listings, overheating in the country’s module manufacturing segment, the unexpected disappearance of US export potential due to tariff wars, and investors’ closer focus on weakening domestic demand, at least in the short term.
According to BNEF, a commodities research firm, Emmvee’s IPO got about one bid per share on offer, versus Waaree’s 80 bids per share during its IPO last year. At least nine more Indian solar manufacturers have plans to go public.
“Timing the market is not our focus but our company’s performance,” said Suhas Donthi, chief executive officer (CEO) at Emmvee. “We are focused on doing the right business in the right manner and we believe the market will take us to the position it thinks it should.”
Edinburgh-based energy consultant Wood Mackenzie estimates the country’s solar module manufacturing capacity will exceed 125GW by 2025, which is more than three times its domestic demand of around 40GW. Nomura projects capacity additions of 100-110GW in the next three years, further raising the risk of oversupply and painful consolidation. The market is waiting to find out who the survivors of the shakeout will be, as it did in China.
“There will be natural consolidation, and there will be five-seven players who will hold scale advantage,” said Gyanesh Chaudhary, managing director of Vikram Solar, which plans to add a 5GW module manufacturing plant in Tamil Nadu to its current portfolio of 4.5GW.
Lighthouse_seek on
The issue with India is exporting their way out of this means they will run into china as a competitor. Normally other anti china countries would be customers, but the US is kind of on an anti renewable phase right now
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Over the next 2-3 fiscal years, 100- 110GW of module manufacturing capacity is likely to be added in India, nearly doubling leading to oversupply.
https://preview.redd.it/ofolbu2sb05g1.jpeg?width=760&format=pjpg&auto=webp&s=54780fba8d3b550124d89e2d52d143524948e6dc
From the industrial belts of Gujarat to the outskirts of Bengaluru, factories are churning out solar panels by the millions, their glassy surfaces stacked and shipped across the country. Utility developers, homeowners and farmers are lapping them up, feeding the surge in India’s clean energy push.
Backed by government incentives and trade protections, Indian solar equipment makers such as Adani Enterprises, Tata Power, Renew Photovoltaics, Waaree Energies and Premier Energies have raced to expand solar module capacity to help meet the country’s ambitious target of installing about 300GW of solar energy by 2030. Reliance Industries also announced extensive plans to build capacity in the space.
But the early boom is showing cracks.
Initial public offerings (IPOs) of Indian solar equipment makers have previously been heavily in demand, but the latest listing of Emmvee Photovoltaic Power ended up with mixed demand. The retail and qualified institutional buyer (QIB) portions were fully booked, but the non-institutional investor (NII) portion remained significantly undersubscribed at 30% in November.
This shift may be due to the large number of clean technology listings, overheating in the country’s module manufacturing segment, the unexpected disappearance of US export potential due to tariff wars, and investors’ closer focus on weakening domestic demand, at least in the short term.
According to BNEF, a commodities research firm, Emmvee’s IPO got about one bid per share on offer, versus Waaree’s 80 bids per share during its IPO last year. At least nine more Indian solar manufacturers have plans to go public.
“Timing the market is not our focus but our company’s performance,” said Suhas Donthi, chief executive officer (CEO) at Emmvee. “We are focused on doing the right business in the right manner and we believe the market will take us to the position it thinks it should.”
Edinburgh-based energy consultant Wood Mackenzie estimates the country’s solar module manufacturing capacity will exceed 125GW by 2025, which is more than three times its domestic demand of around 40GW. Nomura projects capacity additions of 100-110GW in the next three years, further raising the risk of oversupply and painful consolidation. The market is waiting to find out who the survivors of the shakeout will be, as it did in China.
“There will be natural consolidation, and there will be five-seven players who will hold scale advantage,” said Gyanesh Chaudhary, managing director of Vikram Solar, which plans to add a 5GW module manufacturing plant in Tamil Nadu to its current portfolio of 4.5GW.
The issue with India is exporting their way out of this means they will run into china as a competitor. Normally other anti china countries would be customers, but the US is kind of on an anti renewable phase right now