Jim Hughes, Chief Executive of First Solar, the American photovoltaic cells and modules manufacturer, has hinted that the company might look at manufacturing in India — though not immediately.
Hughes was responding to a question in a recent earnings conference call with analysts on the point of whether local manufacturing rules in India was a risk for First Solar.
“Ultimately, if the kind of visible demand that we expect develops in that market, that is likely a market where we would look to put manufacturing in place,” he said.
Hughes sees a big opportunity for First Solar in the private sector projects, (where, the electricity produced would be sold directly to bulk consumers at agreed prices, as opposed to government-sponsored projects that have an element of subsidy.)
“There is certainly some nationalistic sentiment,” he said, adding that it was “not a risk that we spend a lot of time worrying about.” He explained that even if local manufacture rules were to come up — at present, they don’t apply to thin-film based modules, such as those produced by First Solar — they would come up only in public sector programmes like the National Solar Mission.
“We actually believe the private self-generation market is the source of great deal of the opportunity, and you are not going to face those types of local content issues,” he said.
Pointing out that such opportunities translate into demand, Hughes said that when there is sufficient visible demand First Solar might look at manufacturing in India. "At that point, any such policies (mandating local manufacture) would actually be an advantage, not a disadvantage," he said.
He, however, added that First Solar does not support such policies as it believes that “an open market place is in everybody’s best interest.”
Keywords: First Solar, photovoltaic cells, PV modules, solar power, solar mission
Comments:
The situation would be similar to the Coal based power sector, where Govt. introduced the import taxes on Chinese suppliers to support ocal manufactures. Guess what, the Chinese are still selling. Surprised, the market has changed, the key to success is not product or technology but Project Finance. Indian Developers for coal power are still lining up with Chinese equipment manufactures as they offer better terms than GE et all. Solar would be a similar story, unless there is a major breakthrough in technology. In Solar there are high chances for this major breakthrough than Coal Power. Technology may become major deciding factor in future if major breakthrough happens in future. Under such uncertainties,does it make sense to install a GW scale plant in India to compete with small time Indian Manufactures such as Vikram Solar, Jain Irrigation, Surana and Moser Bear.
re made & after 3-4 years treated as sick units.Govt. must think on the lines of only free supply of only Solar Power for Agricultre sector ,Schools & Govt. offices If it becomes necessary.This will help in proper utilization of natural sources & avoid in wastage of man-hours due to power cuts.The promotion of solar power should be linked with central grants.Govt. must give due recognisation to Solar Power generation to avoid total black outs of many many states at a time
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