Reliance  To Take On Chinese Solar PV Makers – Free PDF Download



What has happened?

  • After stitching four clean energy deals and a partnership, Reliance Industries Ltd (RIL) now sees its solar photovoltaic (PV) jigsaw complete.

What are these 4 deals?

  • With the purchase of REC Solar Holdings AS from China National Bluestar (Group) Co. Ltd at an enterprise value of $771 million,
  • RIL can leverage its abilities in panels and polysilicon, and gain access to a global customer base.
  • This should be supported by Germany’s NexWafe’s technology to deliver competitively priced PV panels.
  • For installation of these panels (both rooftop and large scale), RIL will leverage its acquisition of a 40% stake in EPC player Sterling and Wilson Solar.
  • And finally, on storage, the partnership with energy storage company Ambri Inc. should help complete solutions on solar value chain.

Green solar wafers

  • Reliance Industries, through its unit Reliance New Energy Solar Ltd (RNESL) invested $29 million in a Series C financing round in NexWafe.
  • The investment makes RIL a strategic lead investor in the company, which is developing and producing monocrystalline silicon wafers, also called green solar wafers, which are cost effective.
  • “We believe NexWafe’s innovative ultra-thin wafer will give solar manufacturers a significant advantage over existing photovoltaic technologies,
  • Helping consumers in India and globally realize the benefits of solar energy more quickly and more efficiently,” RIL chairman Mukesh Ambani said in a statement.
  • The transaction is proposed to be completed by end of this month.

Hydrogen electrolysers

  • The company has also obtained technology for hydrogen electrolyzers through its Stiesdal partnership.
  • Electrolyzers are used for producing green hydrogen (through electrolysis of water). Denmark-based Stiesdal A/S is privately owned Stiesdal’s technology has potential to deliver significant cost reduction compared to currently available technologies like Alkaline, Proton Exchange Membrane, and Solid Oxide.
  • “RIL has reiterated its target of manufacturing green hydrogen at cost of $1/kg in a decade compared to current cost of $5/kg for the industry.
  • The first demo project will be installed in early 2022,” said Credit Suisse in a report on 13 October.

Acquisition of Chinese company

  • “The REC acquisition would provide RIL with a global footprint to benefit from rising global module demand, which we expect to double by 2025,” Goldman Sachs said in an 11 October report.
  • “More importantly, the acquisition would help provide technology to drive integrated module manufacturing in India,
  • Where we expect solar installation to grow from the current run rate of 5.5GW to 31.5GW by 2030, driven by duty protection as well as government PLI incentives,” the report said.
  • Prior to this, in August, RIL made its first strategic move in the renewable energy sector with an investment of $50 million in US-based energy storage company Ambri Inc.

But how China did it?

  • China acted on a massive scale – giving all kinds of fiscal, financial, material and policy support to its domestic solar manufacturing industries.
  • A report in 2011 found that Chinese solar companies incurred an average annual loss of 40% on net sales.
  • The Chinese government-funded these humongous corporate losses as part of the strategy of cornering the global market.
  • In July 2020, the European Commission concluded that there was sufficient evidence to show that China was subsidising its domestic solar glass industry which had damaged the European PV industry.
  • Free land, free electricity, free capital and at times even free labour supplied by the Chinese state has created Chinese solar manufacturing behemoths who are now dominating the global solar industry.
  • Artificially cheap prices of Chinese solar components have killed the global solar manufacturing industry.
  • In the United States, where solar cells were first invented in 1954, over 100 solar manufacturing companies have gone bankrupt over the last two decades.

Reliance future planning

  • RIL, which currently generates more than half of its revenue from refining and petrochemicals, is pushing for clean energy,
  • By setting up the Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar.
  • RIL, which currently generates more than half of its revenue from refining and petrochemicals, is pushing for clean energy,
  • By setting up the Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar.
  • This complex would have giga factories for integrated solar PV modules, electrolyzers, fuel cells and energy storage,
  • As part of its green energy pivot, RIL also plans to help set up 100GW of solar energy by 2030.

Q) In what form is solar energy is radiated from the sun?

  1. Ultraviolet Radiation
  2. Infrared radiation
  3. Transverse waves
  4. Electromagnetic waves




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