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India’s Solar Export Strategy: Diversification Towards Africa and West Asia
Introduction:
India is striving to establish itself as a global renewable energy powerhouse. However, with stagnating demand in Europe and protectionist policies in the US limiting market access, the country is shifting its focus towards Africa and West Asia.
- To strengthen its position, the Indian government is actively fostering government-to-government (G2G) partnerships aimed at supporting domestic solar manufacturers.
Expanding into Africa and West Asia
- Strategic importance of Africa and West Asia: Growing renewable energy needs in these regions.
- Potential for long-term partnerships.
- Government-backed market assessments: Indian embassies are conducting market research and identifying regulatory challenges.
- Focus on key countries such as Nigeria.
- Major Indian companies exploring new markets: Waaree Energies, Adani Solar, Tata Power Solar, and Vikram Solar are actively seeking export opportunities.
Rationale Behind the Shift
- Declining demand from traditional markets: Slowing European demand and rising US protectionism are creating uncertainty for Indian exports.
- China’s dominance in the global solar supply chain: With an 80% share in global solar module supply, it has a strong presence in Africa due to low-cost products and concessional financing.
- India’s domestic solar capacity: With a 67 GW solar module manufacturing capacity, aimed to reach 100 GW by 2030, government initiatives like the PLI (Production-Linked Incentive) scheme are set to boost local solar manufacturing.
Challenges in Expanding to New Markets
- Competitive pressure from China: Chinese manufacturers offer low-cost, subsidised solar products.
- Policy and regulatory hurdles: Each country has different renewable energy policies and incentives.
- Global solar industry uncertainty: Evolving trade policies and protectionist measures in key markets like the US.
- Impact of changing political regimes post-2024 elections on renewable energy policies.
Future Outlook: Emerging Global Solar Hubs
- India, US, and West Asia to add 100 GW solar capacity by 2025: As per Wood Mackenzie’s report, these regions will play a crucial role in global solar expansion.
- Shift towards advanced solar technologies such as TOPCon and HJT, replacing PERC technology.
- Impact of rising module prices: After two years of declining solar panel prices, 2025 will see a price increase, improving manufacturer profits.
- India’s renewable energy achievements: Total non-fossil fuel capacity reached 217.62 GW as of January 2025.
