Premier energies is an integrated solar power industryand manufacturer its annual installed capacity is 2 GW for cells and 4.13 GW for modules as on June 30, 2024. They also provide EPC, O&M services and operate as an Independent Power Producer. Which is also an additional trigger for growth & business for the company. They have five manufacturing facilities of Solar Power Industry in Hyderabad, Telangana.
As the article’s name specifies already company’s primary business of Solar Power is the manufacturing of solar cells and modules.Recently the company with came up with an IPO and will be using the funds raised for below:
For the establishment of a new 4 GW solar cell and 4 GW solar module manufacturing facility which will be a growth trigger for the company.
Before making any investment decisions, potential investors are encouraged to thoroughly read the entire RHP, including the risk considerations and other specific material, since this summary should not be regarded as comprehensive.What are Premier Energies’ primary and supplementary growth drivers?
It might result from the growth, consumer demand, and government backing of the whole solar chain, which is a rapidly expanding industry in India and around the world. The following are the elements that will help the business grow:
The manufacturing capacities of the solar power industry have significantly increased. In Hyderabad, Telangana, India, they plan to build a new 4 GW solar PV TOPCon cell and 4 GW solar PV TOPCon module production facility. It is anticipated that this development will significantly raise the installed capacity annually.The total estimated cost for this project is ₹33,583.29 million.The new facility will be located at UDL-5 Part at Industrial Park, Seetharampur, Ranga Reddy District, Telangana, India.
Market Demand for Solar Products:
The demand for solar modules, particularly DCR (Domestic Content Requirement) modules in India, is outpacing the current production capacity of solar cells. This demand creates a favorable market opportunity for Premier Energies to expand its manufacturing capabilities and increase sales.
Government Initiatives and Policies:
The Indian government’s support for renewable energy through policies like the National Electricity Policy, 2005, Integrated Energy Policy, 2006 and National Tariff Policy, 2016 creates a positive environment for the growth of solar energy companies like Premier Energies. The government’s push for domestic manufacturing of solar cells and modules further boosts the company’s prospects. The company also intends to capitalize on government initiatives such as the PM-Surya Ghar Muft Bijli Yojana which aims to equip 10 million homes with rooftop solar systems.
Technological Developments:
It is anticipated that investments in the production of cutting-edge solar technologies, such as TOPCon cells and modules, will provide it with a competitive advantage. TOPCon technology is seen as an improvement over monocrystalline PERC cells, despite the fact that it necessitates additional equipment.Premier Energies is a company that manufactures both solar cells and modules. The company’s 2.0 GW combined cell and module manufacturing capability helps shield it from rivals.
Experience and Track Record:
The company has 29 years of experience in the solar manufacturing industry and has made a name for itself in the Indian solar PV manufacturing market. With the establishment of a 75 MW solar cell manufacturing line in 2011, Premier Energies was among the first businesses in India to produce solar cells on a large scale.
What is the future of solar in India
The future of solar energy in India appears very promising, driven by ambitious government targets, increasing demand, and policy support, as detailed in the sources.
Ambitious Capacity Targets:
The Indian government has set a goal to achieve 500 GW of renewable energy capacity by 2030, with 300 GW specifically from solar. This includes grid-connected solar, off-grid applications, and solar pumps for farmers. The country’s installed solar capacity is expected to reach approximately 200 GW by the end of FY2028.
Growth in Installed Capacity:
India’s installed solar capacity has grown significantly, reaching 82 GW in FY2024, up from 22 GW in FY2018. It is projected to reach nearly 200 GW by FY2028. Approximately 65% of the additional 180 GW of power generation capacity expected to be added by FY2028 will come from solar.
Government Support and Policy Initiatives:
- The government has implemented various policies to boost solar power generation and consumption. These initiatives include:
- Solar Parks:Establishment of 51 solar parks, each with a capacity of 500 MW and above, by FY2026, with a cumulative capacity of 37.7 GW.
- PM Surya Ghar Muft Bijli Yojana:A scheme to provide financial assistance and free electricity to 10 million households through rooftop solar installations. This scheme is expected to generate 25 to 30 GW of rooftop solar installation opportunities over the next two to three years.
- PM-KUSUM Scheme:A scheme aimed at de-dieselizing the farm sector, providing water and energy security to farmers, and increasing farmer income through solar power.
- 50 GW Annual Tendering:An initiative to increase solar power generation capacity by setting a fixed annual target of 50 GW for bidding rounds, with 80% of this target focused on solar.
- Renewable Purchase Obligation (RPO):A policy that mandates a gradual increase in the RPO percentage for each state until FY2030, encouraging investment in solar and other renewable projects.
- 100% Foreign Direct Investment (FDI):The government allows 100% FDI in renewable energy projects, including solar power generation and distribution, under the automatic route, which promotes investment in the sector.
- Growing Demand:India is the third-largest power producer and consumer globally, with a growing electricity demand due to urbanization, industrialization, and increasing disposable incomes. The country’s energy requirement in FY2024 was 1,626 billion units.
- Cost Competitiveness:Solar tariffs in India have decreased and stabilized between ₹2.3 and ₹2.6 per kWh over the last five years. This makes solar power a cost-competitive option compared to other sources, like thermal power, whose costs have increased over time.
- Shift from Coal:India is making a significant shift from coal to renewable energy, with solar power being a major contributor. The government plans to replace 81 coal plants with renewable energy sources by CY2026.
- Technological Advancement:There is an industry-wide shift from polycrystalline to monocrystalline and now to TOPCon solar cells. The move to TOPCon technology is expected to increase efficiency, improve longevity, and enhance versatility of solar cells and modules.
- Export Opportunities:With a growing manufacturing capacity, India is not just looking to fulfill domestic demand but also increasing its solar module and cell exports. The US is a major export destination for India’s solar products.
- Decarbonization Goals:India aims to become carbon neutral by 2070, and the low-carbon development of energy systems is a critical part of achieving this.
In conclusion, India’s solar power sector has a bright future and is expected to become a world leader in solar energy generation and production. Due to a combination of government support, technological advancements, and a strong commitment to renewable energy, solar is a significant player in India’s energy landscape. Premier Energies is poised to revolutionise the solar power sector.